contestada

You want to purchase a new car in 7 years and expect the car to cost ​$76 comma 000. Your bank offers a plan with a guaranteed APR of 5.5 % if you make regular monthly deposits. How much should you deposit each month to end up with ​$76 comma 000 in 7 ​years?
Question content area bottom
Part 1
You should invest ​$
  
each month.

Respuesta :

carter1234560

Answer: You should deposit about $1,092.12 each month.

Step-by-step explanation:

To find out how much you should deposit each month to end up with $76,000 in 7 years with an annual percentage rate (APR) of 5.5%, we can use the future value of a series formula. This formula is derived from the concept of the time value of money, specifically for an annuity where you make regular deposits (or payments).

The formula to calculate the monthly deposit (P) needed is rearranged from the future value of an annuity formula:

Ver imagen carter1234560

Otras preguntas