Ask Question
4 August, 00:40

You want to purchase a new car in 5 years and you anticipate the cost of the car to be $55,000. You are given an investment plan with a fixed APR of 6.2%, assuming that you make regular monthly deposits. How much should you deposit at the beginning of each month to reach your goal of $55,000 in 5 years? Round to the nearest cent.

+3
Answers (1)
  1. 4 August, 01:04
    0
    See the formula of the future value of annuity due

    PMT=55,000: (((1+0.062:12) ^ (12

    *5) - 1) : (0.062:12)) * (1+0.062:12)

    =788.31
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You want to purchase a new car in 5 years and you anticipate the cost of the car to be $55,000. You are given an investment plan with a ...” in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers