You need to have 59,173 dollars to buy a new car 5 years from now. How much do you need to save at the end of each month if your savings account pays 4% per year, compounded quarterly? (note: round your answer to the nearest cent, and do not include spaces, currency signs, plus or minus signs, or commas)
You need to have 59,173 dollars to buy a new car 5 years from now. How much do you need to save at the end of each month if your savings account pays 4% per year, compounded quarterly? (note: round your answer to the nearest cent, and do not include spaces, currency signs, plus or minus signs, or commas)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter4: Managing Your Cash And Savings
Section: Chapter Questions
Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...
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An annuity is the sum total of all the periodic payments or investments made over the period of time at a certain rate. An annuity can be determined as the future and the present value of the annuity which is used to determine the future value of a present investment and the present value of future money. The future value of an annuity can be calculated by the following formula,
where,
FV=future value
r=rate of interest
n=number of years
A=equal amount after equal interval
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