document.write( "Question 1142291: mike wants to sabe 20.000 for a motorcycle. determine his monthly payment required if the bank offers a three year investment at 4,9% per year, compounded monthly. \n" ); document.write( "
Algebra.Com's Answer #762998 by ikleyn(52780)\"\" \"About 
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\n" ); document.write( "mike wants to \"highlight%28cross%28sabe%29%29\" save 20.000 for a motorcycle.
\n" ); document.write( "determine his monthly payment required if the bank offers a three year investment at 4,9% per year, compounded monthly.
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document.write( "I will assume that Mike deposits a certain amount at the end of each month during three years.\r\n" );
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document.write( "It is a classic Ordinary Annuity saving plan. The general formula is \r\n" );
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document.write( "    FV = \"P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29\",    \r\n" );
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document.write( "where  FV is the future value of the account;  P is the monthly payment (deposit); r is the monthly percentage yield presented as a decimal; \r\n" );
document.write( "n is the number of deposits (= the number of years multiplied by 12, in this case).\r\n" );
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document.write( "From this formula, you get for the monthly payment \r\n" );
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document.write( "    P = \"FV%2A%28r%2F%28%281%2Br%29%5En-1%29%29\".     (1)\r\n" );
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document.write( "Under the given conditions, FV = $280,000;  r = 0.049/12;  n = 3*12.  So, according to the formula (1), you get for the monthly payment \r\n" );
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document.write( "    P = \"20000%2A%28%28%280.049%2F12%29%29%2F%28%281%2B0.049%2F12%29%5E%283%2A12%29-1%29%29%29\" = $516.86  (rounded to the nearest greatest cent).\r\n" );
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document.write( "Answer.  The necessary monthly deposit value is $516.86.\r\n" );
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document.write( "Note that of projected $20,000, the total of Mike's deposits will be only  3*12 times $516.86, i.e. about 3*12*516.86 = 18606.96 dollars.\r\n" );
document.write( "The rest is what the account will earn/accumulate in 3 years.\r\n" );
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\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans,  see the lessons\r
\n" ); document.write( "\n" ); document.write( "    - Ordinary Annuity saving plans and geometric progressions\r
\n" ); document.write( "\n" ); document.write( "    - Solved problems on Ordinary Annuity saving plans\r
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\n" ); document.write( "\n" ); document.write( "The lessons contain  EVERYTHING  you need to know about this subject,  in clear and compact form.\r
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\n" ); document.write( "\n" ); document.write( "When you learn from these lessons,  you will be able to do similar calculations in semi-automatic mode.\r
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\n" ); document.write( "\n" ); document.write( "Side note : your 4,9% from the condition I read as \" 4.9% \".\r
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\n" ); document.write( "\n" ); document.write( "Fix it in your post !\r
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