Question 1207426
i used the texas instruments business analyst 2 calculator to solve this.


the payment required at the end of each year for 18 years at 4.2% per year compounded monthly is equal to 607.9237653


inputs to the calculator are:
present value = 0
future value = 16000
number of years = 18.


the nominal interest rate per year = 4.2%.


the nominal growth factor is 1.042 per year.


the effective growth factor per month is equal to 1 + .042/12 = 1.0035.


the effective growth factor per year is 1.0035 ^ 12 = 1.042818007.


subtract 1 from this and multiply it by 100 to get an effective interest rate of 4.2818007% per month.


that's what is input to the calculator for the interest rate per time period.


click on payment per time period and you will get 607.9237653.


on online calculator that performs a similar function is found at <a href = "https://arachnoid.com/finance/index.html" target = "_blank">https://arachnoid.com/finance/index.html</a>


here are the results from using that calculator.


<img src = "http://theo.x10hosting.com/2024/060302.jpg">