Suppose You have a savings account earning 4.8% APR and you want to have 1000 at...

Suppose You have a savings account earning 4.8% APR and you want to have 1000 at the end of 4 years. How much should you deposit each month to obtain this goal

Expert Solution

	Deposit in each month (P)	FVA÷([(1+r)^n-1]÷r)

	Here,

A	Interest rate per annum	4.80%
B	Number of years	4
C	Number of payments per per annum	12
A÷C	Interest rate per period ( r)	0.40%
B×C	Number of periods (n)	48
	Future value of annuity (FVA)	1,000

	Deposit in each month (P)	$ 18.94
		1000÷(((1+0.4%)^48-1)÷0.4%)

jeff jeffy answered 1 year ago

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