a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate $? at the end of each month 3.5% compounded monthly Time 10 years Financial Goal $210,000 Click the icon to view some finance formulas. a. The periodic deposit is $ (Do not round until the final answer. Then round up to the nearest dollar as needed.) Formulas In the provided formulas, P is the deposit made at the end of each compounding period, r is the annual interest rate of the annuity in decimal form, n is the number of compounding periods per year, and A is the value of the annuity after t years. P[(1+r)-1] nt r P -1 A n n A A = A = P=- r -1 A nt -

Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter7: Percents
Section7.7: Simple And Compound Interest
Problem 23E
Question
The periodic deposit is ​$ ​(Do not round until the final answer. Then round up to the nearest dollar as​ needed.) $ of the $210,000 comes from deposits and $ comes from interest. (Use the answer from part (a) to find these answers. Round to the nearest dollar as needed.)
a. Use the appropriate formula to determine the periodic deposit.
b. How much of the financial goal comes from deposits and how much comes from interest?
Periodic Deposit
Rate
$? at the end of each month
3.5% compounded monthly
Time
10 years
Financial Goal
$210,000
Click the icon to view some finance formulas.
a. The periodic deposit is $
(Do not round until the final answer. Then round up to the nearest dollar as needed.)
Formulas
In the provided formulas, P is the deposit made at the end of each
compounding period, r is the annual interest rate of the annuity in decimal form, n
is the number of compounding periods per year, and A is the value of the annuity
after t years.
P[(1+r)-1]
nt
r
P
-1
A
n
n
A
A =
A =
P=-
r
-1
A
nt
-
Transcribed Image Text:a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate $? at the end of each month 3.5% compounded monthly Time 10 years Financial Goal $210,000 Click the icon to view some finance formulas. a. The periodic deposit is $ (Do not round until the final answer. Then round up to the nearest dollar as needed.) Formulas In the provided formulas, P is the deposit made at the end of each compounding period, r is the annual interest rate of the annuity in decimal form, n is the number of compounding periods per year, and A is the value of the annuity after t years. P[(1+r)-1] nt r P -1 A n n A A = A = P=- r -1 A nt -
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