Mike's parents decide to deposit an amount of money at the end of every month into a bank account earning interest at the rate of 5% per year compounded monthly. If the savings program began when Mike was 4 years old, how much money should his parents deposit monthly so there will be an accumulated fund of $120,000 by the time he turns 19 years old?

Mike's parents decide to deposit an amount of money at the end of every month into a bank account earning interest at the rate of 5% per year compounded monthly. If the savings program began when Mike was 4 years old, how much money should his parents deposit monthly so there will be an accumulated fund of $120,000 by the time he turns 19 years old?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 52P

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Mike's parents decide to deposit an amount of money at the end of every month into a bank account earning interest at the rate of 5% per year compounded monthly. If the savings program began when Mike was 4 years old, how much money should his parents deposit monthly so there will be an accumulated fund of $120,000 by the time he turns 19 years old?

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