document.write( "Question 1208633: Larger wants to take a trip in 8 years. She needs 2,400$. How much should she deposit into an account that pay 3.5% interest daily to meet her goal, round to nearest dollar
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Algebra.Com's Answer #847298 by MathTherapy(10551)\"\" \"About 
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document.write( "Larger wants to take a trip in 8 years. She needs 2,400$. How much should she deposit into an account that pay 3.5% interest daily to meet her goal, round to nearest dollar\r\n" );
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document.write( "The formula for an ORDINARY ANNUITY need to be used here. This is:\r\n" );
document.write( "\"matrix%281%2C3%2C+FV%5Boa%5D%2C+%22=%22%2C+PMT%28%28%281+%2B+r%29%5En+-+1%29%2Fr%29%29\", or \"matrix%281%2C3%2C+PMT%2C+%22=%22%2C+FV%5Boa%5D%2F%28%28%281+%2B+r%29%5En+-+1%29%2Fr%29%29\", or \"matrix%281%2C3%2C+PMT%2C+%22=%22%2C+FV%5Boa%5D%28r%2F%28%281+%2B+r%29%5En+-+1%29%29%29\", where: \r\n" );
document.write( " PMT = PAYMENT/DEPOSIT to be made throughout the investment period annuity (UNKNOWN, in this case)\r\n" );
document.write( "FVoa = FUTURE VALUE of the annuity ($2,400, in this case)\r\n" );
document.write( "   r = interest RATE, per period(\"matrix%281%2C3%2C+.035%2F360%2C+or%2C+.007%2F72%29\", in this case) <=== Note that 360 is NORMALLY used\r\n" );
document.write( "                                                                     to represent the number of days\r\n" );
document.write( "                                                                     in a year. 365 can also be used.\r\n" );
document.write( "   n = total NUMBER of investment periods (8 * 360 = 2,880, in this case)\r\n" );
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document.write( "\"matrix%281%2C3%2C+PMT%2C+%22=%22%2C+FV%5Boa%5D%28r%2F%28%281+%2B+r%29%5En+-+1%29%29%29\"\r\n" );
document.write( " ---- Substituting $2,400 for FVoa, \".007%2F72\" for r, and 2,880 for n\r\n" );
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document.write( "Payment/Amount to be made/deposited, daily , or PMT = 0.722144255, rounded to $0.72.\r\n" );
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document.write( "SIDE NOTE:\r\n" );
document.write( "A deposit of $0.72 per day for 360 days per year, at a \"matrix%281%2C3%2C+.007%2F72%2C+per%2C+day%29\" (3.5% annual) interest rate, for 2,880 days\r\n" );
document.write( "(8 years) = $2,392.87, which falls SHORT of her $2,400 goal by $7.13 ($2,400 - $2,392.87). However, a daily deposit\r\n" );
document.write( "of $0.722144, rounded from $0.722144255, will certainly HIT the $2,400 MARK.\r\n" );
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document.write( "Another SIDE NOTE:\r\n" );
document.write( "Above, I rounded off to the NEAREST cent, not nearest DOLLAR. So, in reality, rounding off $0.72244255 to the nearest\r\n" );
document.write( "DOLLAR gives us $1, per day, which will be more than enough to reach her TARGET of $2,400 in 8 years, or 2.880 days. As\r\n" );
document.write( "a matter of fact, $1 per day will yield $3,323.44 in 8 years (2,880 days), $923.44 more than her target goal of $2,400.\r\n" );
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document.write( "SELAH!!
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