00:02
We have to calculate how much you need to deposit each month to have $50 ,000 in an account in 5 years with a 6 % annual interest rate.
00:12
So you can use the future value of an nut formula.
00:15
So the formula is fv is equal to pmt multiplied by 1 added to r to the power n subtracted from 1 divided by r.
00:30
Well, fv is the future value that is $50 ,000.
00:39
Pmt is the monthly deposit that we have to find.
00:51
R is the monthly interest rate which is the annual rate divided by 12 that is 6 % divided by 12 is equal to we get 0 .005.
01:06
Then n is the number of 1 which is 5 years multiplied by 12 that is we get 60 months.
01:16
Now we have to plug in the values into the formula.
01:19
So 50 ,000 is equal to pmt multiplied by 1 added to 0 .005 to the power 60 subtracted from 1 divided by 0 .005.
01:38
So now let's calculate the monthly deposit that is pmt which is equal to pmt multiplied by 1 .005 to the power 60 subtracted from 1 divided by 0 .005...