a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit $? at the end of every three months Rate 4.5% compounded quarterly Click the icon to view some finance formulas. Time 6 years Financial Goal $20,000 a. The periodic deposit is $. (Do not round until the final answer. Then round up to the nearest dollar as needed.) b. $ of the $20,000 comes from deposits and $ comes from interest. (Use the answer from part (a) to find these answers. Round to the nearest dollar as needed.)
a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit $? at the end of every three months Rate 4.5% compounded quarterly Click the icon to view some finance formulas. Time 6 years Financial Goal $20,000 a. The periodic deposit is $. (Do not round until the final answer. Then round up to the nearest dollar as needed.) b. $ of the $20,000 comes from deposits and $ comes from interest. (Use the answer from part (a) to find these answers. Round to the nearest dollar as needed.)
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Related questions
Question
Transcribed Image Text:**Financial Planning Exercise**
This exercise involves calculating periodic deposits required to achieve a financial goal and determining the contribution of deposits and interest to the total amount.
**Objective:**
a. Use the appropriate formula to determine the periodic deposit.
b. Determine how much of the financial goal comes from deposits and how much comes from interest.
**Scenario:**
- **Periodic Deposit:** $? at the end of every three months
- **Rate:** 4.5% compounded quarterly
- **Time:** 6 years
- **Financial Goal:** $20,000
**Instructions:**
1. **Determine Periodic Deposit:**
- Calculate the amount needed to be deposited every quarter to achieve the financial goal of $20,000.
- Ensure calculations are precise by not rounding until the final step. Round up to the nearest dollar for the final deposit amount.
2. **Analyze Financial Goal Composition:**
- Identify how much of the $20,000 comes from the actual deposits made over the 6 years.
- Determine the portion of the $20,000 attributable to interest accrued.
- Use the periodic deposit calculated in part (a) to find these amounts. Round to the nearest dollar as needed.
Click the information icon to view relevant financial formulas needed for these calculations.
This exercise enhances skills in financial planning and understanding of compound interest implications on savings.
Expert Solution
Step 1
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
