SOLUTION: Find the monthly payment that will yield the given future value. (Round your answer to the nearest cent.) $240,000 at 10 1/2% interest for thirty-nine years; ordinary annuity

Question 1175592: Find the monthly payment that will yield the given future value. (Round your answer to the nearest cent.)
$240,000 at 10 1/2% interest for thirty-nine years; ordinary annuity
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
pv = 0
fv = 240,000
np = 39 * 12 = 468 months
ir = 10.5%/12 = .875% per month
payment at end of time period.

click on pmt and the calculator tells you that you would have to invest 36.22 at the end of each month for 39 years to have 240,000 at the end of the 39 year investment period.

i double checked with my ti-ba-ii calculator and it tells me that the more exact figure is 36.21976181 at the end ofeach month.

fv = future value
pv = present vlue
np = number of time periods
pmt = payment in each time period
ir = interest rate % per time period
payment at (beginning/end) tells you whether your payment needs to be at the beginnikng of each time period or at the end of each time period.

if your answer needs to be to the nearest penny, then 36.22 is your answer.

the online calculator i used can be found at https://arachnoid.com/finance/index.html

here's a display of the result of using that calculator.

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