I have gotten several difference answers- can someone PLEASE Help... only if you

Question

I have gotten several difference answers- can someone PLEASE Help... only if you are certain.

You plan to buy the house of your dreams in the next 17 years. You have estimated that the price of the house will be $66,381 at that time. You are able to make equal deposits every month at the end of the month in a savings account at a rate of 13.92 percent, compounded monthly. How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams? Round to two decimal places.

Explanation / Answer

Future value of ordinary annuity = savings per month *((1+i)^n-1)/i

In your case n would be 17*12 =204 because interest is compounded monthly

i would be rate of interest per month = 13.92%/12 = 1.16%

money required after 17 years is $66,381

66,381 = savings per month *((1+1.16%)^204-1)/1.16%

66,381 = savings per month * 820.24

Savings per month = 66381/820.24

Savings per month = $ 80.93

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