Ivanthedumbfck
New member
- Joined
- Oct 7, 2014
- Messages
- 23
A sum of money is deposited at the end of every month for 10 years at 7.5% compounded monthly. After the last deposit, interest for the account is to be 6% compounded quarterly and the account is to be paid out by quarterly payments of $4,800 over six years. What is the size of the monthly deposit?
Here is what I've done so far. I don't know if i did it right.
FV= PMT[(1+i)^n-1/i] i=0.06/4=0.015 n=6x4=24
FV=4800[(1+0.015)^24-1/0.015]
FV=137,440.90
FV= PMT[(1+i)^n-1/i]
137,440.90=PMT[(1+0.00625)^120-1/0.00625] i=0.075/12=0.00625 n=10x12=120
137,440.90=PMT(177.930342)
PMT=$772.44 monthly deposit
Here is what I've done so far. I don't know if i did it right.
FV= PMT[(1+i)^n-1/i] i=0.06/4=0.015 n=6x4=24
FV=4800[(1+0.015)^24-1/0.015]
FV=137,440.90
FV= PMT[(1+i)^n-1/i]
137,440.90=PMT[(1+0.00625)^120-1/0.00625] i=0.075/12=0.00625 n=10x12=120
137,440.90=PMT(177.930342)
PMT=$772.44 monthly deposit
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