SOLUTION: How much would you need to deposit in an account each month in order to have $30,000 in the account in 6 years? Assume the account earns 5.8% interest.
Round your answer to the n
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Round your answer to the n
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Question 1039372: How much would you need to deposit in an account each month in order to have $30,000 in the account in 6 years? Assume the account earns 5.8% interest.
Round your answer to the nearest cent as needed.
You can put this solution on YOUR website! Please see:
http://www.financeformulas.net/Annuity-Payment-from-Future-Value.html
and then look at:
http://www.financeformulas.net/Annuity-Payment-from-Future-Value.html#calcHeader
To solve go to
http://www.financeformulas.net/Annuity-Payment-from-Future-Value.html#calcHeader
For future value put 30000
for rate per period put .005 (if you use your calculator and divide 5.8% by 12 to find monthly rate you get a number around .005
For number of period put 72 since six years is the same of 12* 6 months = 72 months.
You then see the number $415.95
You can put this solution on YOUR website! Does the interest compound monthly? I'm going to assume it does:
:
PMT*(((1+r/n)^nt-1)/(r/n)) = 30,000
PMT*(((1+0.058/12)^12*6)-1)/(0.058/12) = 30,000
PMT*85.87 = 30,000
PMT = 30,000/85.87 = 349.37 This is how much you have to save every month.
John
You can put this solution on YOUR website!
How much would you need to deposit in an account each month in order to have $30,000 in the account in 6 years? Assume the account earns 5.8% interest.
Round your answer to the nearest cent as needed.
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