Answer:
Weidwans will do monthly contribution of 326.68 per month to be able to get 20,000 in four years and make the downpayment for a house.
Explanation:
We want to make monthly deposit to generate a future value of 20,000 in 4 years at 12% annual rate compounding monthly
[tex]FV \div \frac{(1+r)^{time} -1}{rate} = C\\[/tex]
FV $20,000.00
time 4 years x 12 month per year: 48
rate 12% per year / 12 month = 1% monthly = 0.01
[tex]20000 \div \frac{(1+0.01)^{48} - 1}{0.01} = C\\[/tex]
C $ 326.68
Weidwans will do monthly contribution of 326.68 per month to be able to get 20,000 in four years and make the downpayment for a house.
