Answer:
$540.98
Step-by-step explanation:
future value= $ 50,000
number of deposits (n)= 8*12 = 96
rate (r) = 4% per month
= 4÷12 per annum
= 0.33% p.a
i = 0.33÷100
= 0.0033
We know,
Future value of annuity = P÷i [ (1 + i)^n - 1 ]
$50,000 = P÷ 0.0033 [ ( 1+0.0033)^96 - 1]
$50,000 * 0.0033=P [ (1.0033)^96 - 1 ]
$165 = P*0.305
P = $165÷0.305
P = $ 540.98
Rough::
let x= 1.0033)^96
log x = 96 * log (1.0033)
log x = 0.1156
x = Antilog (0.1156)
= 1.305
1.305 - 1 = 0.305
