The Martin family has decided to save up for a new swimming pool. They want to save $14,000 in four years. They find a savings account for which interest was compounded monthly at 7.6%. How much will they have to deposit each month to meet this goal?
A) $250.49
B) $308.33
C) $517.25
D) $612.11

Question

Quizplus · Accepted Answer

To find the monthly deposit, we use the future value of an annuity formula: FV = P * [(1 + r)^nt - 1] / r. Here, FV = $14,000, r = 0.076/12, n = 12, t = 4. Solving for P gives approximately $250.49.

The Martin Family Has Decided to Save Up for a New