Question

Based on an average cost per year to attend a university or college of your choice, how much should be invested each month to obtain the goal of that amount (the goal is 40,000$)? Assume 6%/a compounded monthly for 5 years.

I don't need the answer, just the formula please!

Answer 1

FVoa = PMT [((1 + i)n - 1) / i]

where i= .06/12

PMT is the monthly payment
n is the number of periods, n=12*5 here
solve for pmt

I get about 570 dollars per month

Answer 2

Thank you so much!