Solve these two problems

Question

Find the monthly payment that will yield the future value of $90,000 using an ordinary annuity at 9.25% interest for 35 years. (Round the answer to the nearest cent.)

Find the monthly payment that will yield the future value of $250,000 using an ordinary annuity at 10.5% interest for 39 years. (Round the answer to the nearest cent.)

Answer 1

So we are looking for the payment that generates the future value given to us. So we will use the below formula:

Payment = future value / (((1+interest rate/12) ^ (years * 12) -1) / interest rate/12)

Plugging into the formula gets you:

1) $28.72

2) $37.73