SOLUTION: i am planning to go on a vacation in 7 years which will cost $18000 i am going to save every 3 months which pays 5.5% how much money do i have to put in every 3 months?

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Question 934358: i am planning to go on a vacation in 7 years which will cost $18000 i am going to save every 3 months which pays 5.5% how much money do i have to put in every 3 months?
Found 2 solutions by vicgonzerx, MathTherapy:
Answer by vicgonzerx(31) (Show Source):
You can put this solution on YOUR website!
from the annuity formula F=R[((1+i)^n-1)/i)
F=future amount w/c is 18,000
R=amunt to put every 3 months
n=mxy number of periods
since quarter in 1 year u have to put 4 times w/c is every 3 months
so n=4*7
n=28
i=ineterest=5.5%
so,
18,000=R[((1+.055)^28-1)/.055]
R=284.66dollars is the answer

Answer by MathTherapy(10552) (Show Source):
You can put this solution on YOUR website!

i am planning to go on a vacation in 7 years which will cost $18000 i am going to save every 3 months which pays 5.5% how much money do i have to put in every 3 months?

Formula for end-of-month payment into an ordinary annuity, given:
future value
number of payments per annum,
time, in years, and
annual interest rate:
OR
Based on the above formula, a future value of $18,000, 4 payments per annum, over a 7-year period, @ 5.5%
annual interest, payment to make = $.
You can do the check!!
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