You want to have $282,000.00 when you retire 28 years for an annuity. How much money...
You want to have $282,000.00 when you retire 28 years for an
annuity. How much money should be deposited at the end of monthly
in an investment plan that pays 6.8% compounded monthly, so you
will have the $282,000.00 in 28 years?
The monthly payments need to be $. (Round to 2 decimal places.)
Homework Answers
Ans $ 281.50
| P = | Periodic payments |
| r = | rate of interest |
| n = | no of years |
| Future Value of Annuity = | P ( (1 + r)n - 1 ) / r |
| 282000 = | P* ((1 + +6.8%/12)^336 - 1) / (6.8%/12) |
| 282000 = | 1001.77267779277 * P |
| P = | 282000 / 1001.77267779277 |
| P = | 281.50 |
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