Maths question help! (1 Viewer)

[jmcillhatton]

Cristina plans to travel to Europe for her end of year school trip and wants to deposit money in an account earning 12% p.a compounding montly, before she goes.

i) to ensure she will be able to draw out $1500 per month for 7 months, show Cristina's calculations to determine how much she should deposit now?

ii) how much interest does she make?

Thankyou

 

[jmcillhatton]

test is tomorrow, need answers please!

 

[Hazballs]

Don't have my graphics with me and i can't be bothered to use formula but

n= 7
i = 12
pv = ?
pmt = 1500
fv =0
c/y = 12
p/y = 12

I think that's right, then you solve for pv..?