document.write( "Question 1030447: Seems the interest, and money story problems give me the hardest time.. \r
\n" ); document.write( "\n" ); document.write( "Mitch is tired of renting and decides that within the next 5 years he must save $25,000.00 for the down payment on a home. He finds an investment company that offers 8% interest compounded monthly and begins depositing $275 each month in the account.\r
\n" ); document.write( "\n" ); document.write( "A.) Is this monthly amount sufficient to help him meet his 5-year goal?\r
\n" ); document.write( "\n" ); document.write( "B.) If not, find the minimum amount he needs to deposit each month that will enable him to meet his goal in 5 years?\r
\n" ); document.write( "\n" ); document.write( "Please show all work, in hopes that I can understand afterwards. \n" ); document.write( "

Algebra.Com's Answer #645507 by MathTherapy(10552) $\"\"$ $\"About$

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Seems the interest, and money story problems give me the hardest time.. \r
\n" ); document.write( "\n" ); document.write( "Mitch is tired of renting and decides that within the next 5 years he must save $25,000.00 for the down payment on a home. He finds an investment company that offers 8% interest compounded monthly and begins depositing $275 each month in the account.\r
\n" ); document.write( "\n" ); document.write( "A.) Is this monthly amount sufficient to help him meet his 5-year goal?\r
\n" ); document.write( "\n" ); document.write( "B.) If not, find the minimum amount he needs to deposit each month that will enable him to meet his goal in 5 years?\r
\n" ); document.write( "\n" ); document.write( "Please show all work, in hopes that I can understand afterwards.
\n" ); document.write( "

The formula for the future value of an ORDINARY ANNUITY should be used, which is:, where:
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document.write( " is the future value in the amount of time (years), or the amount that will be available then (UNKNOWN, in this case)
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document.write( "PMT is the payment amount ($275, in this case)
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document.write( "i is the interest rate, per year (8%, or .08, in this case)
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document.write( "m is the number of compounding periods per year (12, in this case)
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document.write( "t is the amount of time the money is invested (5, in this case)
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document.write( "Can you tell if he'll have enough?\r
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document.write( "The formula for the PAYMENT, per period, to an ORDINARY ANNUITY should be used. This is:, where:
\n" );
document.write( " is the future value in the amount of time (years), or the amount that will be available then ($25,000, in this case)
\n" );
document.write( "PMT is the payment amount (UNKNOWN, in this case)
\n" );
document.write( "i is the interest rate, per year (8%, or .08, in this case)
\n" );
document.write( "m is the number of compounding periods per year (12, in this case)
\n" );
document.write( "t is the amount of time the money is invested (5, in this case)
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document.write( "Do the calculations the same way they were done above. You should get payment or  \n" );
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