Hello, I need help answering the 3 questions below. Question 4 (of 10) 4 value:

Question

Hello,

I need help answering the 3 questions below.

Question 4 (of 10) 4 value: 0.50 points Problem 4-36 Calculating the Number of Payments You're prepared to make monthly payments of $340, beginning at the end of this month, into an account that pays 7.5 percent interest compounded monthly. How many payments will you have made when your account balance reaches $25,000? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).) Number of payments References eBook & Resources pe he Nmber ofDiiauly 2 Worksheet Payments

Explanation / Answer

Solution :-

Monthly Payment = $340

Rate of month = (7.5%/12) = 0.625% per month

Amount needed = $25000

Future Value of Annuity formula used

As amount deposited after the end of month therefore n is taken after deducting 1

= 340 * FVAF ( n-1 , 0.625% ) + 340 = 25000

= FVAf ( n-1 , 0.625% ) = 24660 / 340

= FVAF ( n-1 , 0.625% ) = 72.529

= n - 1 = 59.79

= n = 60.79 times or months

As per chegg policy one question is needed in case of many question

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