document.write( "Question 1148191: Niki needs $5200 for university tuition when she graduates from high school in 2 years. She plans to make deposites into an account that earns 6.5%, compound monthly. How much should she deposit every month? \n" ); document.write( "
Algebra.Com's Answer #769550 by ikleyn(52787)\"\" \"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 = \"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 = $5200;  r = 0.065/12;  n = 2*12.  So, according to the formula (1), you get for the monthly payment \r\n" );
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document.write( "    P = \"5200%2A%28%28%280.065%2F12%29%29%2F%28%281%2B0.065%2F12%29%5E%282%2A12%29-1%29%29%29\" = $203.47.\r\n" );
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document.write( "Answer.  The necessary monthly deposit value is $203.47.\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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