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the weidmans want to save $50,000 in 2 years for a down payment on a house....

the weidmans want to save $50,000 in 2 years for a down payment on a house. if they make monthly deposits in an account paying 12%, compounded monthly. what are the size of the payments that are required to meet thier goal? (round to the nearest cent)
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Answer #1

FV=50000

r=12% = 0.12

t=2 years

k= 12 for monthly payment

i=r/k = 0.12/12 = 0.01

n=t*k =2*12 =24 months

.

formula is

the weidmans need to invest 1853.7 each moth for 2 years

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