Sally has a sum of $30000 that she invests at 8% compounded monthly. What equal monthly payments can she receive over a period of a) 8 years? Payment = $ b) 15 years? Payment = $
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The formula for the monthly payment (PMT) of an annuity is: $$PMT = P \frac{r(1+r)^n}{(1+r)^n - 1}$$ where: P = Principal amount ($30000) r = monthly interest rate (annual rate / 12) n = total number of payments (number of years * 12) Show more…
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