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assume that you want to save 25 000 euro after 2.5 years. Today you will invest...

assume that you want to save 25 000 euro after 2.5 years. Today you will invest 8500 euro. the bank charges you 4.025% p.a. what should be monthly investment to save this money?

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Answer #1

The future value of initial invest of 8500 euro = 8500 * (1 + 0.04025)^2.5 = 9,381.3045924568 euro

The balance amount required = 25,000 - 9,381.3045924568 = 15,618.6954075432 euro

FV = 15,618.6954075432 euro

n = 2.5 * 12 = 30 months

r = 0.04025/12 = 0.003354166667 monthly rate

Monthly investment = 495.7404513762 euro

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