Answer:
$ 809.78
Step-by-step explanation:
Given that
F = future value = $50,000
Interest rate = r = 1.45% = 0.0145
Number of period per year = 12months
Time expressed in years = 5years
The present value of a periodic deposit
P =( F ×r/n)/{ (1+r/n)^nt} -1
Substituting the values into the above formula
P = (50000× 0.0145/12)/(1+0.0145/12)^12×5}-1
= 50000×0.001208/(1+0.0012)^60}-1
= 60.4/1.0012)^60}-1
60.416/1.074608-1
60.4/0.07460
= $ 809.779
His monthly deposit will be $ 809.78
