SOLUTION: Find the monthly payment that will yield the future value of $260,000 using an ordinary annuity at 10.5% interest for 42 years. (Round the answer to the nearest cent.) I'm havin

Question 1029053: Find the monthly payment that will yield the future value of $260,000 using an ordinary annuity at 10.5% interest for 42 years. (Round the answer to the nearest cent.)
I'm having a hard time with problems like this. The answer I keep coming up with is $49.86. I'm looking for a good explanation of how to work this out. Thanks in advance!!
Answer by robertb(5830) (Show Source): You can put this solution on YOUR website!
For ordinary annuity, the formula for the future value (or amount A) is

where A = $260,000, r = 0.105, t = 42, and n = 12, and we are solving for the monthly payment R.
==>
==>
==> R = $28.54, the monthly payment.

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