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

Question

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

Reiny · Answer

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 ?

claimill · Answer

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.