An ordinary annuity pays 7.55% compounded monthly. A. Morty Zayshawn wants to make equal monthly deposits in his account for 30 years in order to then make equal withdrawals of $2,000 per month for the next 15 years, reducing the balance to zero. How much should be deposited each month for the first 30 years?
We have to use annuity formula to solve the problem.
PVA = W x 1 - 1 where PVA is the present value of loan
(1 + i)n W is the amount required to be paid at the end of each year
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