Find the monthly payment required to obtain a future value given the information: $4,800 at an APR of 4.5% compounding monthly for 5 years and 6 months. The monthly payment is what?

Question

Mathematics

Evangeline Rogers

21 June, 10:26

Find the monthly payment required to obtain a future value given the information: $4,800 at an APR of 4.5% compounding monthly for 5 years and 6 months. The monthly payment is what?

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Grace Warren · Answer 1

Okay for monthly, i =.00375. And the number of months, n=66.

So we have x * s angle 66 = 4800

Which becomes x * (1.00375^66 - 1) /.00375 = 4800

So, x is 64.23, which is the payment per month which will accumulate to 4800 after 66 months, assuming compounding interest and payment at the end of each month.