Question

Your goal is to create a college fund for your child. Suppose

you find a fund that offers an APR of 5% How much should
you deposit monthly to accumulate $170,000 in 15 years?

Answer 1

the monthly payment is $636.02

Explanation:

The calculation of the monthly amount deposited i.e. PMT is shown below:

GIven data

NPER = 15 × 12 months = 180

RATE = 5% ÷ 12 = 0.4167%

PV = $0

FV = $170,000

based on the above information

The formula is given below:

= PMT(RATE;NPER;PV;FV;TYPE)

After applying the given formula, the monthly payment is $636.02