Fv=10 000 What do I do to find weekly payment general annuity

[aisha]

Mary would like to save $10 000 at the end of 5 years for a future down payment on a car. How much should she deposit at the end of each week in a savings account that pays 12%/a compounded monthly, to meet her goal?

This is a general ordinary annuity
therefore before I make the line diagram and write out the series and find out the weekly payment I am thinking that I will probably have to find the nominal interest rate first Is this correct? How do I do this question? PLz help me

 

[aisha]

Is 11.95%/a compounded weekly equivalent to 12%/a compounded monthly? SOMEONE PLZ HELP ME!

 

[Pengwuino]

God no, 11.95% compounded weekly is like 50% compounded monthly.

 

[aisha]

ok well what do i do when i find fv i get $28.15 with the formula and $28.24 on the graphing calculator

I have to find the nominal interest rate don't I?

 

[shmoe]

Is 11.95%/a compounded weekly equivalent to 12%/a compounded monthly? SOMEONE PLZ HELP ME!

Pretty close. It's a good idea to avoid rounding until absolutely necessary though. (Pengwuino, these are quoted as nominal rates)

ok well what do i do when i find fv i get $28.15 with the formula and $28.24 on the graphing calculator

Uhh, how did the graphing calculator calculate that? Is it some kind of rounding problem? I'm not sure why your answers are different.

 

[aisha]

I don't know I think the graphing calculator is correct here are the values I input into the tvm solver

N=260.00
I%=12
PV=0.00
PMT=0.00
FV=10 000
P/Y=52
C/Y=4.00
PMT: END BEGIN

I tried so hard not to round when I was using the formula but my decimal gets smaller not bigger no matter what.

Is the new interest rate I calculated correct? Thats the one i pluged into the future value formula not the 12%

 

[aisha]

I think I just saw my mistake C/Y should be 12 not 4 when I change this value I get $28.15 which is what I get when I use the formula this value should be correct right?