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Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 5% . How much should you deposit monthly to accumulate ​$90000 in 16 ​years? Question content area bottom Part 1 You should invest ​$    enter your response here each month. ​(Do not round until the final answer. Then round to two decimal places as​ needed.)

 Jul 2, 2023
 #1
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1 - Will consider 5% APR as "compounded monthly".

 

2 - Use this formula to find the monthly payments.

 

3 -  FV=90,000; R=0.05/12; N=16*12;PMT = FV*(((1 + R)^N - 1)^-1* R)

 

4 -  PMT =$ 306.91 - monthly payments that must be made for 16 years or: 16 x 12==192 months.

 Jul 2, 2023
 #2
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Hey there! Calculating the monthly deposit required to accumulate $90,000 in 16 years with an APR of 5% is an important step towards building a college fund for your child.

To determine the monthly deposit, we can use the formula for the future value of an ordinary annuity:

FV = P * [(1 + r)^n - 1] / r

Where: FV is the future value ($90,000), P is the monthly deposit, r is the monthly interest rate (APR divided by 12), and n is the total number of months (16 years multiplied by 12 months).

Plugging in the values, we have:

$90,000 = P * [(1 + 0.05/12)^(16*12) - 1] / (0.05/12)

To solve for P, we can rearrange the equation:

P = ($90,000 * (0.05/12)) / [(1 + 0.05/12)^(16*12) - 1]

Performing the calculations, the monthly deposit required to accumulate $90,000 in 16 years at an APR of 5% is approximately $321.35.

Besides that I must note that I not long ago did writing with the help of https://phdessay.com/free-essays-on/childhood-memories/ and from where I remembered about childhood memories, it was so melancholic, it seems that in general I am a melancholic person, but I adore helping school children with solving these math problems, they seem so easy to me.

 Jul 4, 2023

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