document.write( "Question 1144992: Joan is saving for a new stereo in 3 years that costs 1500$. How much does she need to deposit at the end of every month in an account that earns interest at 4.5%, compounded monthly \n" ); document.write( "

Algebra.Com's Answer #766176 by ikleyn(52803) $\"\"$ $\"About$

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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 = ,    \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 a nominal \r\n" );
document.write( "monthly percentage yield presented as a decimal; 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 = .     (1)\r\n" );
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document.write( "Under the given conditions, FV = $1500;  r = 0.045/12;  n = 3*12.  So, according to the formula (1), you get for the monthly payment \r\n" );
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document.write( "    P =  = 38.996 dollars = round it ! = 39 dollars.\r\n" );
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document.write( "Answer.  The necessary monthly deposit value is 39 dollars..\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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