it View Favorites Tools Help er 5 17 of 30 value 1000 points

it View Favorites Tools Help er 5 17 (of 30) value 10.00 points You\'re prepared to make monthly payments of $245, beginning at the end of this month, into an account that pays 8 percent interest compounded monthly How many payments will you have made when your account balance reaches $64,000? (Do not round intermediate calculations and round your answer Number of payments Hints References eBook & Resources Hint#1 0 Type here to search

Solution

Using trail and error method, around 152 payments are required to reach 64,000 with monthly payment of $245.

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Payment required	=		FV*r /[(1+r)^n -1]
Future value	FV		64,000.00
Rate per period	r
Annual interest			8%
Number of interest payments per year			12
Interest rate per period			0.08/12=
Interest rate per period			0.667%
Number of periods	n
Number of years			12.64
Periods per year			12
number of payments			151.68
Each payment	=		64000*0.006667/ [(1+0.006667)^151.68 -1]
	=		245.25