document.write( "Question 1208775: Use the savings plan formula to answer the following question.
\n" ); document.write( "Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 7 %. How much should you deposit monthly to accumulate $89,000 in 13 years?
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\n" ); document.write( "\n" ); document.write( "(Do not round until the final answer. Then round to two decimal places as needed.) \n" ); document.write( "

Algebra.Com's Answer #847231 by ikleyn(52777) $\"\"$ $\"About$

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\n" ); document.write( "Use the savings plan formula to answer the following question.
\n" ); document.write( "Your goal is to create a college fund for your child.
\n" ); document.write( "Suppose you find a fund that offers an APR of 7%.
\n" ); document.write( "How much should you deposit monthly to accumulate $89,000 in 13 years?
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document.write( "I will consider/assume this saving plan as a classic Ordinary Annuity saving plan\r\n" );
document.write( "(money are deposited at the end of each month). The general formula for such a plan 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\n" );
document.write( "r is the monthly effective percentage 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 = .     (1)\r\n" );
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document.write( "Under the given conditions, FV = $89,000;  r = 0.07/12;  n = 13*12.  \r\n" );
document.write( "So, according to the formula (1), you get for the monthly payment value\r\n" );
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document.write( "    P =  = 351.3193,\r\n" );
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document.write( "which we round to rounded to closest greater cent  $351.32.\r\n" );
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document.write( "Answer.  The necessary monthly deposit value is $351.32.\r\n" );
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\n" ); document.write( "\n" ); document.write( "Solved.\r
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