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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

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    hi ank91901! :wink:

    show us what you've tried and where you're stuck, and then we'll know how to help! :smile:
     
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