document.write( "Question 1148462: Mr. Nakamura wants to make monthly deposits into an annuity for his grandchild so that $10,000 will be available in 6 years. If the interest rate is 9% compounded monthly, find the monthly deposit. (Round your final answer to two decimal places.)
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Algebra.Com's Answer #769823 by ikleyn(52781)\"\" \"About 
You can put this solution on YOUR website!
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\n" ); document.write( "\n" ); document.write( "            Thanks to @MathTherapy, who noticed my fault.\r
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\n" ); document.write( "\n" ); document.write( "            I re-edited / re-calculated my post,  and a renewed / corrected version is below.\r
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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 = $10,000;  r = 0.09/12;  n = 6*12.  So, according to the formula (1), you get for the monthly payment \r\n" );
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document.write( "    P = \"10000%2A%28%28%280.09%2F12%29%29%2F%28%281%2B0.09%2F12%29%5E%286%2A12%29-1%29%29\" = $105.26.\r\n" );
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document.write( "Answer.  The necessary monthly deposit value is $105.26.\r\n" );
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\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans,  see the lessons\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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