Answer:
Ans. Jessica has to make monthly deposits of $203.34 in order to get $11,000 at the end of the fourth year, at a rate of 6% compounded monthly.
Step-by-step explanation:
Hi, the first thing to do is to convert that compounded rate into an effective rate, that is by just dividing by 12, therefore, 0.06/12=0.005 or 0.5% effective monthly.
We also know that this deposits are going to take place at the end of every month, for 4 years, that means 48 months.
And to find the value of the monthly deposit, we need to use the following equation and solve for A
Filling it up, we get:
Best of luck