Question

You would like to have $260,000 in 18 years by making regular deposits at the end of each month in an annuity that pays an annual interest rate of 4.5% compounded monthly. How much of the $260,000 comes from interest? In your calculations, do not round until the final answer. Then, round the monthly payment to the nearest dollar.

Answer 1

Please help! =)

Answer 2

Do you know which formula to apply?

Answer 3

I think it's A= R [(1+r/m)^mt -1] divided by r/m

Answer 4

Correct! Since you are looking present value :)

Answer 5

what did you get for the answer?