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Sagot :
Given the possibility of an investment with an annual interest rate of 3.1 %, the person must deposit $ 580645.16 to receive monthly payments of $ 1500 for 20 years.
How to determine the require investment to receive a desired monthly payment
According to this question, the person have decided to invest money to receive a monthly payment, meaning no savings and the adequacy of using the simple interest formula:
g = C · (r/100) (1)
Where:
- C - Invested money, in monetary units.
- r - Monthly interest rate, in percentage.
- g - Monthly payment, in monetary units.
If we know that g = 1500 and r = 3.1/12, then the invested money must be:
C = 100 · g/r
C = 100 · [1500/(3.1/12)]
C = 580645.16
Given the possibility of an investment with an annual interest rate of 3.1 %, the person must deposit $ 580645.16 to receive monthly payments of $ 1500 for 20 years.
To learn more on interest rates: https://brainly.com/question/13735414
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