Kurt wants to have $835,000 in an investment account six years from now.The account will pay .67 percent interest per month.If he saves money every month,starting one month from now,how much will he have to save each month to reach his goal?

Question

Quizplus · Accepted Answer

The correct answer is A.To calculate the monthly savings required, we can use the formula:PMT = PV * (r / (1 - (1 + r)^-n))where:PMT is the monthly savings requiredPV is the future value of the investment ($835,000)r is the monthly interest rate (0.67% / 12 = 0.0056)n is the number of months (6 years * 12 months/year = 72 months)Plugging in the values, we get:PMT = 835,000 * (0.0056 / (1 - (1 + 0.0056)^-72))PMT = $9,062.07Therefore, Kurt will need to save $9,062.07 each month to reach his goal.

Kurt Wants to Have $835,000 in an Investment Account Six