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You're prepared to make monthly payments of $195, 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 $54,000?

Sagot :

The number of payments one would have made when the account balance reaches $54,000 is 236

What is an ordinary annuity?

An ordinary annuity is the periodic fixed payments that are made at the end of the month and in this case, the requirement is to determine the number of monthly payments.

The number of monthly payments can be determined using a financial calculator that needs to be set to its end mode because monthly are made at the end of each month

I/Y=8%/12(monthly interest rate)

PMT=-195(monthly payment)

PV=0(there was zero balance before the first payment)

FV=54000(future value)

CPT(press compute)

FV=235.75(approximately 236 monthly payments)

Find out more about ordinary annuity on:https://brainly.com/question/25792915

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