Question 1131685
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Use the standard formula for an annuity, with contributions of x monthly for 7 years (84 total contributions), with an annual interest rate of 7% compounded monthly, with a future value of $10,000...<br>
{{{10000 = x(((1+.07/12)^84-1)/(.07/12))}}}<br>
Evaluate the expression in parentheses, then divided 10000 by the result to find the monthly contribution x.<br>
I recommend evaluating the expression one small step at a time; if you try to enter it in your calculator all at once, it is far too easy to get parentheses in the wrong places, giving ridiculous answers.<br>
(answer: $92.59)