How much would your parents have to deposit each month into an account that grows at...

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How much would your parents have to deposit each month into an account that grows at a rate of 9% per year compounded semi-an

business economics

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Answer 1

Answer #1

Monthly rate of interest = (1 + 9%/2)^(1/6) - 1 = 0.73631%

Monthly deposit = A

Total payments = 3*12 = 36

Future amount in the account = 66000

Find A = 66000 * (A/F, 0.73631%, 36)

= 66000 * 0.02436

= 1607.77

The answer is 1607.77

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Answer 2

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