SOLUTION: Brown needs $5,000 in three years. If the interest rate is 9% compounded monthly, how much should she save at the end of each month to have that amount in three years?

Question 1054702: Brown needs $5,000 in three years. If the interest rate is 9% compounded monthly, how much should she save at the end of each month to have that amount in three years?
Found 2 solutions by Fombitz, MathTherapy:
Answer by Fombitz(32388) (Show Source): You can put this solution on YOUR website!

Answer by MathTherapy(10552) (Show Source): You can put this solution on YOUR website!
Brown needs $5,000 in three years. If the interest rate is 9% compounded monthly, how much should she save at the end of each month to have that amount in three years?

You need to use the formula for payments on an ORDINARY ANNUITY, with a future value of $5,000.
This formula considers end-of-month payments as opposed to beginning-of-month payments, and should give monthly payments of:
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