Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Join our platform to connect with experts ready to provide precise answers to your questions in different areas. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.
Sagot :
Step 1
State the formula for the Future Value.
[tex]\begin{gathered} Fv=\frac{(d(1+\frac{r}{m})^{mt}-1))}{\frac{r}{m}} \\ \end{gathered}[/tex]where;
[tex]\begin{gathered} Fv=\text{ \$700000} \\ r=\frac{9}{100}=0.09 \end{gathered}[/tex][tex]\begin{gathered} m=12 \\ d=? \\ t=30\text{years} \end{gathered}[/tex]Step 2
Find how much you need to deposit in the account each month
[tex]\begin{gathered} Fv=\frac{(d(1+\frac{r}{m})^{mt}-1))}{\frac{r}{m}} \\ 700000=\frac{(d(1+\frac{0.09}{12})^{12\times30}-1))}{\frac{0.09}{12}} \end{gathered}[/tex][tex]\begin{gathered} 700000(\frac{0.09}{12})=(d(1.0075)^{360}-1) \\ 5250=(d(14.73057612-1) \\ \end{gathered}[/tex][tex]\begin{gathered} 5250=13.73057612d \\ \frac{13.73057612d}{13.73057612}=\frac{5250}{13.73057612} \\ d=\text{ \$}382.3583187 \\ d\approx\text{ \$}382.36 \end{gathered}[/tex]Hence, approximately $382.36 need to be deposited in the account each month
We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.
