Michael wants to have $20,000 in an investment account seven years from now. The account will pay 0.4 percent interest per month. If Michael saves money every month, starting one month from now, how much will he have to save each month?

Q: account

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A: Using excel PV function

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A: The time value of money is a concept in finance that takes into account the effects of compounding…

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A: GIVEN, Future Value  = $7500 Interest rate(r)  = 6.25/100 = 0.0625 Time Period(t) = 16 years Present…

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A: Using excel PV function

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A: Compound = Monthly = 12Payment = p = $300Time = t = 15 * 12 = 180Monthly Interest Rate = r = 0.4%

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A: Computation:

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A: Payment = p = $2150Time = t = 10Interest Rate = r = 18%

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Q: annuity.he plans to deposit $500 into this account each month at 2.4 % annual interest compounded…

A: in this problem we have to find out future value FACTOR and from that we get future value.

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A: Present Value = Future value / e^rt Where r = 8.50% t = 13 years