question 15 (3.3 points) you want to save in order to buy a car, in 6 years, without taking out a loan. you…

question 15 (3.3 points) you want to save in order to buy a car, in 6 years, without taking out a loan. you determine that you’ll need $35,000.00 for the purchase. if you deposit money into an ordinary annuity that yields 4.48% interest compounded monthly, how much will you need to deposit each month? use this formula: $pmt=\frac{fv\times\frac{r}{n}}{(1 + \frac{r}{n})^{nt}-1}$ enter the dollar amount rounded to the nearest cent. your answer: answer

question 15 (3.3 points) you want to save in order to buy a car, in 6 years, without taking out a loan. you determine that you’ll need $35,000.00 for the purchase. if you deposit money into an ordinary annuity that yields 4.48% interest compounded monthly, how much will you need to deposit each month? use this formula: $pmt=\frac{fv\times\frac{r}{n}}{(1 + \frac{r}{n})^{nt}-1}$ enter the dollar amount rounded to the nearest cent. your answer: answer

Answer

Explanation:

Step1: Identify the values

$FV = 35000$, $r=0.0448$, $n = 12$, $t = 6$

Step2: Calculate the denominator

First, calculate $(1+\frac{r}{n})^{nt}-1$. $(1+\frac{0.0448}{12})^{12\times6}-1=(1 + 0.003733)^{72}-1$. $1.003733^{72}-1\approx1.3017 - 1=0.3017$.

Step3: Calculate the numerator

$FV\times\frac{r}{n}=35000\times\frac{0.0448}{12}\approx35000\times0.003733 = 130.655$.

Step4: Calculate the monthly payment

$pmt=\frac{130.655}{0.3017}\approx433.06$.

Answer:

$433.06$