# Jamal wants to invest \$150 every month for 10 years.   At the end of that time he would like to have \$25000.  At what annual interest rate, compounded monthly, does Jamal need to invest to reach...

Jamal wants to invest \$150 every month for 10 years.   At the end of that time he would like to have \$25000.

At what annual interest rate, compounded monthly, does Jamal need to invest to reach his goal?

jeew-m | Certified Educator

calendarEducator since 2012

starTop subjects are Math, Science, and Social Sciences

This question is related to the future value of growing annuity. It is given by;

`FV = A((1+i)^n-1)/i`

FV = Future value of the time period n

A = Initial payment at n=1

i = compound rate

n = number of payment period considered

(The entire section contains 107 words.)

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## Related Questions

sibun | Student

This question is related to the future value of growing annuity. It is given by;

FV = Future value of the time period n

A = Initial payment at n=1

i = compound rate

n = number of payment period considered

For the question;

FV = \$25000

A = \$150

n = 120 months

For ease of calculation we can set

Then ;

No using a scientific calculator you can solve this.

It will give r as;

So the monthly interest rate

Annual interest rate

So the annual interest rate would be 6.31%.

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