Solve
Step
i = 0.09 ÷ 12 = 0.0075
P = 347.70
You want to save $20,000 for a car. How much should you deposit each month with an annual rate of 9% for 4 years in order to save for the car?
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Solve |
Step |
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i = 0.09 ÷ 12 = 0.0075 |
k = 12, r = 0.09, Monthly means 12 times a year |
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FV is payment = 20,000, n = 4 years |
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Find the Payment (or rent) |
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P = 347.70 |
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| You make 60 equal payments of $347.70 in order to save $35,000. | |
| Enter 20,000 × 0.09 ÷ 12 ÷( (1 + 0.09 ÷ 12 ) xy ( 12 × 4 ) - 1) [enter or =] in your calculator | |
| Hint: don't round until you are completely finished with your calculations. | |