The monthly deposit should be $81.38.
An ordinary annuity is a fixed payment made for a fixed amount of time at the end of each period.
The formula to determine the monthly deposit is:
Future value / annuity factor
Annuity factor = {[(1+r)^n] - 1} / r
Where:
- r = interest rate = 5.5 / 12 = 0.4583%
- n = 20 x 12 = 240
35,450 / [(1.004583)^240 - 1] / 0.004583 = $81.38
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