Determine the monthly payment necessary to accumulate $30,000 in a fund paying 6% per year, compounded monthly, for 8 years. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent.
We have to use financial calculator to solve this | ||||||
put in calculator - | ||||||
FV | 30000 | |||||
PV | 9 | |||||
I | 6%/12 | 0.50% | ||||
N | 8*12 | 96 | ||||
compute PMT | ($244.36) | |||||
Therefore monthly payment required = | $244.36 | |||||
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