Question

Acme annuities recently offered an annuity that pays 4.7% compound monthly. What equal monthly deposit should be made into this annuity in order to have $92000 in 16 years?

Answer 1

Formula for Compound Interest

Amount = Principal * (1 + Rate/100)^Time
A = P * (1 + R/100)^T
P = A/((1 + R/100)^T) = 92000/((1 + 4.7/100)^16) = $44120.5503