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17 December, 03:25

Acme annuities recently offered an annuity that pays 4.7% compound monthly. What equal monthly deposit should be made into this annuity in order to have $92000 in 16 years?

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  1. 17 December, 06:53
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    Formula for Compound Interest

    Amount = Principal * (1 + Rate/100) ^Time

    A = P * (1 + R/100) ^T

    P = A / ((1 + R/100) ^T) = 92000 / ((1 + 4.7/100) ^16) = $44120.5503
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