SOLUTION: Scott and Alice want to purchase a vacation home in 10 years and need $50000 for a down payment. How much should they place in a savings account each month if the per annum rate o

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Question 1187910: Scott and Alice want to purchase a vacation home in 10 years and need $50000 for a down payment.
How much should they place in a savings account each month if the per annum rate of return is assumed to be 6% compounded monthly?
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
the calculator at https://arachnoid.com/finance/index.html can help find the answer for you.

here's a display of the results:



inputs are everything but pmt.
output is pmt.
input numbers are entered without commas.
fv is positive because it is money coming in.
pmt is negative because it is money going out.

time periods are in months.
number of time periods is 10 years * 12 = 120 months.
interest rate per time period is 6% per year / 12 = .5% per month.
payments are assumed to made at the end of each time period.