9514 1404 393
Answer:
$442.80
Step-by-step explanation:
The formula for the amount of an ordinary annuity is ...
A = P(12/r)((1 +r/12)^(12t) -1)
where payment P is made n times per year and interest is accrued at annual rate r.
Filling in the given values, we want ...
50,000 = P(12/0.04)(1 +0.04/12)^(12·8) -1) = 112.91854P
P = 50,000/112.91854 ≈ 442.80
You would need to deposit $442.80 each month for 8 years.
