Sixty monthly deposits are made into an account paying 6% nominal interest compounded monthly. If the objective of these deposits is to accumulate $100,000 by the end of the fifth year, what is the amount of each deposit?

Respuesta :

Answer:

The amount is "$1433.28"

Explanation:

The amount of each deposit is calculated as shown below:

[tex]\begin{aligned}&A=100000\left(A / F, \frac{6 \%}{12}, 5 * 12\right)=100000(A / F, 0.5 \%, 60)=100000(A / F, 0.005,60) \\&(A / F, i, N)=\frac{i}{\left((1+i)^{N}-1\right)} \quad(A / F, 0.005,60)=\frac{0.005}{\left((1+0.005)^{60}-1\right)}=0.0143328 \\&(A / F, 0.005,60)=\frac{0.005}{\left((1+0.005)^{60}-1\right)}=0.0143328 \\&A=100000(A / F, 0.005,60)=100000(0.0143328) \\&A=\$ 1433.28\end{aligned}[/tex]

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