Janine is 21 years old. she opens an account that pays 4.4% interest, compounded monthly. she sets a goal of saving $10,000 by the time she is 24 years old. how much must she deposit each month?
Future Value=Payment*[(1+i)^n-1]/i where i is the interest rate and n is the number of payments. N is 36 (3 years *12 months per year) and our monthly interest rate is 4.4%/12.
Doing the math, 10000=Payment/38.4089665
Payment=260.36
