Question

I need help with answer number 6. The question is answered but I need to show the formula and I can't seem to get it correct.

Could you please help?

Question 4 41% 41% 4 points Off-The-Books Investment Firm, LLC, has offered you an investment it says will return to you $20,000 in 2 years. To get in, you'll need to make a $10,000 deposit to their receivables account and promise not to tell anyone about it. What is the annual return on this investment? Question 5 $3,300,387 $3,300,387 4 points A pleasant gentleman has advised you via email that you are entitled to a $1 million inheritance. Putting specifics aside, you start to ponder the retirement nest-egg this could help you accumulate over the next 30 years. As a diligent finance student you do some research and find that the money can be invested into an account paying a fixed 4% rate, compounded quarterly. How much retirement money would be in the account after 30 years? (round to nearest dollar) Question 6 It turns out that the gentleman in Question 5 is really a devious centaur looking to con good people out of their hard earned money. Undeterred, you decide to calculate how much money you would need to put aside at the beginning of each month for the next 30 years in order to have the sum of money determined in Question 5. You estimate conservatively that your money will earn 3% a year, compounded monthly. What will your monthly contribution to the account need to be? $5,649.47 5 points

Answer 1

Ans 6) we need to find annuity due payment using future value

formula to find this value is given below

Annuity due = FV * r/((1 + r)^n -1)*(1/(1+r))

= 3300387 * .0025/((1.0025)^360 - 1) * (1/1.0025)

= $5649.47