Question

You're prepared to make monthly payments of 380, beginning at the end of this month, into an account that pays an apr of 7.9 percent. How many payments will you have made when your account balance reaches 29,000?

Answer 1

Calculating the number of payments for a given account balance involves using the future value annuity formula, which requires the periodic payment amount, the periodic interest rate, and the number of payments.

Step-by-step explanation:

The question is asking to find out the number of monthly payments required to reach a balance of $29,000 in an account with a 7.9 percent annual percentage rate (APR), given that the payments of $380 are made at the end of each month. This is a typical question dealing with the concept of annuities in financial mathematics, where we use present value or future value formulas to determine the terms of an investment or loan.

To solve this problem, we would apply the formula for the future value of an ordinary annuity, which incorporates the periodic payment amount, the interest rate per period, and the number of periods. Since we do not have the exact formula for annuities ready in this provided information, we could not accurately determine the number of payments without such formula.

However, in general, to solve this type of problem, you would convert the APR to a monthly interest rate because the payments are monthly. Then, using the future value annuity formula, you would solve for the number of payments required to reach the $29,000 balance.