Determining Periodic Deposit Amount to Accumulate a Desired Future Amount: Jane wants to buy a new car for $32,000 immediately after her graduation from college. She wants to know the amount that she has to deposit at the end of each month for the next four years in a saving account that pays 5.5% per year compounded monthly in order to accumulate the $32,000.

Answer the following two questions.

The amount that she has to deposit at the end of each month =

Total amount of interest earned by Jane in this plan =

Answers to 2 decimal places.

Answer rating: 100% (QA)

To determine the amount that Jane needs to deposit at the end of each month and the total amount of ... View the full answer