Math Problem Statement
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? Your data is as follows: Periodic deposit: $? at the end of each month, rate: 5.5% compounded monthly, time: 14 years, financial goal: $210000. Determine the periodic deposit in $.
Solution
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Math Problem Analysis
Mathematical Concepts
Annuities
Compound Interest
Algebra
Formulas
Future Value of an Ordinary Annuity: FV = P × [(1 + r)^n - 1] / r
Theorems
Time Value of Money
Suitable Grade Level
Grades 11-12, College Level
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