Question

You want to deposit 6% of $53,070.00 each year into an IRA(Individual Retirement Account). After finding you will deposit $3,184.2 in one year, find how much you will deposit per month.

Answer 1

Answer:

$265.35

Explanation:

First, recall that:

$\begin{gathered} 6\%\text{ of }\ 53,070.00=0.06\times\ 53,070.00 \\ = \ 3,184.2 \end{gathered}$

Since the annual deposit is $3,184.2, divide by 12 to find the monthly deposit.

$\begin{gathered} \text{Monthly Deposit=}\frac{3,184.2}{12} \\ =\ 265.35 \end{gathered}$

Each month, the amount to be deposit is $265.35.