Question

Sarafina is making monthly payments into an annuity. She wants to have ​$900 in the fund to buy a new convection range in six ​months, and the account pays 8.4​% annual interest. What are her monthly payments to the​ account?

Answer 1

`\bf \qquad \qquad \textit{Future Value of an ordinary annuity} \\\\ A=pymnt\left[ \cfrac{\left( 1+(r)/(n) \right)^(nt)-1}{(r)/(n)} \right]`



`\bf \begin{cases} A= \begin{array}{llll} \textit{accumulated amount}\\ \end{array}\to & \begin{array}{llll} 900 \end{array}\\ pymnt=\textit{periodic payments}\\ r=rate\to 8.4\%\to (8.4)/(100)\to &0.084\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly payments, thus} \end{array}\to &12\\ t=years\to (6)/(12)\to &(1)/(2) \end{cases} \\\\\\ 900=pymnt\left[ \cfrac{\left( 1+(0.084)/(12) \right)^{12\cdot (1)/(2)}-1}{(0.084)/(12)} \right]`


solve for "pymnt"