SOLUTION: Determine the monthly amount to be added to a savings account (starting with a zero balance) yielding 5.4% interest for 8 years if the final value of the account is to be $20,000
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Question 1062891: Determine the monthly amount to be added to a savings account (starting with a zero balance) yielding 5.4% interest for 8 years if the final value of the account is to be $20,000 Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! 20000=A{1+(.054/12)^96-1) divided by (.054/12); the 96 are the number of months and A is the amount of money needed each month.
multiply through by .054/12 to clear the fraction.
90=A*0.5388. Without rounding, divide by 0.5388----
A=$167.02
