+4 Janine is 21 years old. She opens an account that pays 1.25% interest, compounded monthly. She sets a goal of saving $10,000 by the time she is 24 years old. How much must she deposit each month?
+36916 If she deposits at the beginning of the month, this becomes and ANNUITY DUE calculation...here is the formula :
Pluggin' in the numbers FV = $ 10 000
i = decimal interest per period = .0125/ 12 months
n = number of periods = 3 x 12 = 36 months ( when she is 24)
then solving for "C" results in C = $ 272.46 per month
+36916 If she deposits at the beginning of the month, this becomes and ANNUITY DUE calculation...here is the formula :
Pluggin' in the numbers FV = $ 10 000
i = decimal interest per period = .0125/ 12 months
n = number of periods = 3 x 12 = 36 months ( when she is 24)
then solving for "C" results in C = $ 272.46 per month
