Jessica wants to accumulate $15,000 by the end of 4 years in a special bank account, which she had opened for this purpose. To achieve this goal, Jessica plans to deposit a fixed sum of money into the account at the end of the month over the 4-year period. If the bank pays interest at the rate of 8% per year compounded monthly, how much does she have to deposit each month into her account? (Round your answer to the nearest cent.)

asked by Luz

4 years ago

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1 answer

i = .08/12 = .006666...
n = 4(12) = 48

P(1.006666...^48 - 1)/.006666... = 15000

solve for P

answered by Reiny

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Question

Jessica wants to accumulate $15,000 by the end of 4 years in a special bank account, which she had opened for this purpose. To achieve this goal, Jessica plans to deposit a fixed sum of money into the account at the end of the month over the 4-year period. If the bank pays interest at the rate of 8% per year compounded monthly, how much does she have to deposit each month into her account? (Round your answer to the nearest cent.)

1 answer

i = .08/12 = .006666...
n = 4(12) = 48

P(1.006666...^48 - 1)/.006666... = 15000

solve for P

Ask a New Question or answer this question.

Reiny · Answer

i = .08/12 = .006666... n = 4(12) = 48 P(1.006666...^48 - 1)/.006666... = 15000 solve for P