Question 1132676
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Tutor @jerrygou41 answered the wrong problem -- finding the monthly payment you would have if you took a loan for 7 years at 4.5% compounded monthly.<br>
Tutor @MathTherapy gave you the correct answer without showing how to get it; if you actually wanted to learn how to solve a problem like this, that response would  of course be of no use to you.<br>
Here is one form of the formula you can use to find the monthly deposit required "A" to accumulate a value of $40,000 in 7 years at 4.5% interest compounded monthly:<br>
{{{40000= A((1+.045/12)^((12*7))-1)/(.045/12)}}}<br>
It is easy to get parentheses in the wrong places when solving the problem using that formula; I suggest doing the calculations for finding A as follows:<br>
(1) 1+.045/12
(2) to the power 84
(3) -1
(4) divided by (.045/12) [parentheses critical there!]
(5) 40000 divided by that number