Rashon is saving money and plans on making monthly contributions into an account earning an annual interest rate of 3.9% compounded monthly. If Rashon would like to end up with $144,000 after 10 years, how much does he need to contribute to the account every month, to the nearest dollar? Use the following formula to determine your answer. A=d(((1+i)^(n)-1)/(i)) A= the future value of the account after n periods d= the amount invested at the end of each period i= the interest rate per period n= the number of periods Answer:

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Rashon is saving money and plans on making monthly contributions into an account earning an annual interest rate of  3.9% compounded monthly. If Rashon would like to end up with  $144,000 after 10 years, how much does he need to contribute to the account every month, to the nearest dollar? Use the following formula to determine your answer.  A=d(((1+i)^(n)-1)/(i))  A= the future value of the account after  n periods  d= the amount invested at the end of each period  i= the interest rate per period  n= the number of periods Answer:

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Identify Given Values: Identify the given values from the problem. A = $144,000 (future value of the account) annual interest rate = 3.9% n = 10 years * 12 months/year = 120 months (number of periods) i = (3.9% annual interest rate) / 12 months = 0.00325 (interest rate per period)Plug into Formula: Plug the identified values into the compound interest formula. A = d * (((1 + i)^(n) - 1) / i) $144,000 = d * (((1 + 0.00325)^(120) - 1) / 0.00325)Calculate Exponentiation: Calculate the value inside the parentheses (1 + i)^(n). (1 + 0.00325)^(120) = (1.00325)^(120)Substitute Calculated Value: Calculate the exponentiation from the previous step. (1.00325)^(120) ≈ 1.457689Calculate Numerator: Substitute the calculated value back into the formula. $144,000 = d * ((1.457689 - 1) / 0.00325)Divide by Interest Rate: Calculate the numerator of the fraction. 1.457689 - 1 = 0.457689Solve for d: Divide the numerator by the interest rate per period. 0.457689 / 0.00325 ≈ 140.8264615Round Monthly Contribution: Solve for d by dividing the future value A by the result from the previous step. $144,000 / 140.8264615 ≈ 1022.55Round the monthly contribution to the nearest dollar. d ≈ $1023

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