Ans :
Given,
Future Value of Annuity (FVA) = $10,000
Period
(n) = 18 years
Interest Rate (r) = 5.8 %
= 0.4833 % Monthly
Future Value of
Annuity (FVA) = Monthly Payment [(1 + r)n - 1 / r ]
10,000 = Monthly Payment [(1 + 0.004833)18 *
12 - 1 / 0.004833]
10,000 = Monthly Payment [( 2.8332 - 1) /
0.004833]
10,000 = Monthly Payment * 1.8332 / 0.004833
Monthly Payment = 10,000 * 0.004833 / 1.8332
Monthly Payment = $ 26.36 ........
You will need to deposit $ 26.36 every month to make your goal
and total investment is $ 5,693
