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# Round to the nearestâ€‹ cent

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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 \$94,000in 14 years?

positivityqueen  Jul 2, 2017
#1
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OK. Start with this one: You take 5.7% and divide by 12=5.7/12 =0.475. You enter this under ir. Enter 0 under PV. Enter 94,000 under FV. Enter 14 x 12 =168 months under np. Press PMT key to get your answer.

Guest Jul 2, 2017
#2
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i received -366.92 and it was wrong

Guest Jul 2, 2017
#3
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If you are looking for a FV of 94,000, then it is CORRECT. If you want the PV of the annuity, then your question is not stated correctly. If you're looking the answer to be =\$813.42, then you want the PV????

Guest Jul 2, 2017
#4
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i believe so

Guest Jul 2, 2017
#5
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The question should be: Acme Annuities is offering a 5.7% rate on 14-year annuities. If you had \$94,000 in your account, what monthly payment should you get over the 14-year period? Then 94,000 should be entered under PV, and press PMT to get your answer.

Guest Jul 2, 2017
#6
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This question is stated correctly. 94,000 is a future value.

Let's convert the years into months. (12*14=168)

Now let's set up our notation.

A=F(A/F, i , n)

A=94,000(A/F, 5.7%, 168)

Now time for the formulas.

A= 94000((.057)/(1.057^168-1))

A = \$0.48355 (This is the monthly deposit to achieve \$94,000 in 14 years [168 months])

Guest Jul 4, 2017