How much should you deposit each month in order to save $20,000 in five years? The account you will use pays 5.75% APR compounded monthly.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 4QTD
icon
Related questions
Question

How much should you deposit each month in order to save $20,000 in five years? The account you will use pays 5.75% APR compounded monthly.

PMT= A divided by 1 plus APR divided by n to the factor of n times Y minus 1 divided by APR divided by n) or [(1+APR/N)^(nY)-1)/(APR/n)].

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 2 images

Blurred answer
Knowledge Booster
Types Of Securities Firms
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT