Question 1194195: A fund of ₱240,000 is to be accumulated by making monthly deposits
of ₱6,000. If money is worth 16% compounded monthly and deposits
are made at the end of each month,
a. how many regular deposits of ₱6,000 are needed?
b. how much is in the fund after the ninth deposit?
c. what is the interest earned on the 10th deposit?
d. what is the increase in the fund on the 20th deposit?
e. what additional deposit should be made after the last regular
deposit is made?
Found 2 solutions by Theo, MathTherapy:
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! my cash flow of deposits and interest and remaining balance are shown below.
answers to your questions are below.
a. how many regular deposits of ₱6,000 are needed?
31 regular deposits of 6,000 are needed.
b. how much is in the fund after the ninth deposit?
the remaining balance after the ninth deposit is equal to $213,413.34.
c. what is the interest earned on the 10th deposit?
the interest earned on the 10th deposit is equal to $2,845.51.
this is based on .16/12 * $213,413.34 which is the remaining balance before the 10th deposit is made.
the interest is then calculated and added to that remaining balance and then the 6,000 deposit is subtracted.
the interest is not earned on the 6,000 deposited.
it is earned on the remaining balance that existed before the 6,000 was deposited.
d. what is the increase in the fund on the 20th deposit?
the remaining balance after the 20th deposit is equal to $136,487.95.
the remaining balance before the 20tyh deposit is equal to $128,771.00.
the increase after the 20th deposit is equal to 128,771.00 minus 136,487.95 = $7,716.95.
e. what additional deposit should be made after the last regular
deposit is made?
the additional deposit for the last payment is equal to $8,477.31.
the spreadsheet has all the information.
let me know if you have any questions.
theo
Answer by MathTherapy(10552)  (Show Source):
You can put this solution on YOUR website! A fund of ₱240,000 is to be accumulated by making monthly deposits
of ₱6,000. If money is worth 16% compounded monthly and deposits
are made at the end of each month,
a. how many regular deposits of ₱6,000 are needed?
b. how much is in the fund after the ninth deposit?
c. what is the interest earned on the 10th deposit?
d. what is the increase in the fund on the 20th deposit?
e. what additional deposit should be made after the last regular
deposit is made?
a. To realize the $240,000, at $6,000 per month, it'll take 2.689 years, or 2 years, 8.27 months,
but since this is compounded monthly, it will be 2 years & 9 months, or 33 months!
b. Amount in account after the 9th month/deposit: $56,971.42
Accept no other answers!
These are the only 2 I'll do for you!
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