1. Limited time only! Sign up for a free 30min personal tutor trial with Chegg Tutors
    Dismiss Notice
Dismiss Notice
Join Physics Forums Today!
The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

How to determine monthly deposits to reach a financial goal

  1. Feb 26, 2014 #1
    Hi everybody. I'm trying to figure out a somewhat confusing problem about savings accounts.
    I want to save 96,000 over the span of 20 years (or 240 months). At the moment there is no money in the account. My account compounds interest monthly at a rate of .5%. How do I determine the amount of money I should be setting back every month to reach my goal?
    In sum:
    a_0=0
    a_240= 96000
    r=0.5%=.005
    b=monthly deposits, so, how do I find b?

    Any input would be greatly appreciated.
     
  2. jcsd
  3. Feb 27, 2014 #2

    tiny-tim

    User Avatar
    Science Advisor
    Homework Helper

    hi ank91901! :wink:

    show us what you've tried and where you're stuck, and then we'll know how to help! :smile:
     
Know someone interested in this topic? Share this thread via Reddit, Google+, Twitter, or Facebook




Similar Discussions: How to determine monthly deposits to reach a financial goal
Loading...