Answer:
The monthly payment which is required to achieve the goal is $676.18
Explanation:
The monthly payment which is required to achieve the goal is computed as:
Using the excel formula of PMT:
=PMT(rate,nper,pv,fv,type)
where
PMT is payment monthly
rate is 7%
but rate is compounded monthly, so
r = 7%/ 12
nper is number of years which is 3 years
but the number of years also compounded monthly, so
nper = 3 × 12
fv is future value, which is $27,000
Putting the values above:
=PMT(7%/12,3 × 12,0,-27000,0)
= $676.18
