Sally has a sum of $20000 that she invests at 9% compounded monthly. What equal monthly payments can she receive over a period of a) 6 years? Answer = $ b) 11 years? Answer = $
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09 / 12 r = 0.0075 Calculate total number of compounding periods (nt): nt = N * T nt = 12 * 6 nt = 72 Calculate monthly payment (PMT): PMT = PV * r / (1 - (1 + r)^(-nt)) PMT = $20,000 * 0.0075 / (1 - (1 + 0.0075)^(-72)) PMT ≈ $360.51 Show more…
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