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Acme Annuities recently offered an annuity that pays 5.7 % compounded monthly. What equal monthly deposit should be made into this annuity in order to have $ 104,000 in 14 ​years?

peppy492  Feb 24, 2017
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This is the formula you would use to calculate this:

FV=P{[1 + R]^N - 1/ R}

104,000 = P {[1 + 0.057/12]^(14*12) - 1 / [0.057/12]}

104,000 = P x                  256.189897....

P = 104,000 / 256.189897

P =$405.95 - Monthly payment needed to save $104,000 @ 5.7% comp. monthly.

Guest Feb 24, 2017

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