Acme Annuities recently offered an annuity that pays 7.5% comouned monthly. What equal monthly deposit should be made into this company in order to have $133,000 in 11 years?
(Round to nearest cent)
Accepted Solution
A:
$$X\frac{(1 + 0.075/12)^{12(11)} - 1}{0.075/12} = 133000$$
X = 651.43 (to the nearest cent)