Asked by claimill

You have decided to take a vacation to New Zealand in 8 years. You estimate the trip will cost $12,500. You currently have $1,800 in an account yielding 0.2% month. How much will you have to save each month to reach your goal? I got $147.65 a month. Is that correct
Answered by Reiny
you will need a PV of 10700
x( 1 - 1.002^-96)/.002 = 10700
x(87.267434..) = 10700
x = 122.61

How did you get 147.65 ?
Answered by claimill
Under the function key of excel - the PMT key =PMT(0.2%/12,96,-1800,-12500)

PMT = ?
PV = $1,800
FV = $12,500
Rate = 0.2%/12
NPER = 96


$148.08

This what I got.
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