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A. Use the appropriate formula to determine the periodic deposit.
A. Use the appropriate formula to determine the periodic deposit.b. How much of the financial goal comes from deposits and how much comes from interest?
Periodic deposit $? at the end of each month
Rate : 5.5% compounded monthly,
time: 10 years,
financial goal: $190,0000
a. the periodic deposit is $ (Do not round until the final answer. Then round up to the nearest dollar as needed.)
b. $ of the $190,000 comes from deposits and $ comes from interest. (Use the answer from part (a) to find these answers. Round to the nearest dollar as needed.)
Final answer:Theperiodic depositis approximately $1,303.47. $156,416.40 of the $190,000 comes from deposits and $33,583.60 comes from interest.Explanation:To determine theperiodic deposit, we can use theformulafor thefuture valueof anordinary annuity:FV = P * [(1 + r)^n - 1] / rWhere:In this case, the future value is $190,000, theinterest rateper period is 5.5% (or 0.055), and the number of periods is 10 years * 12 months/year = 120 months.Substituting these values into the formula:$190,000 = P * [(1 + 0.055)^120 - 1] / 0.055Solving for P:P = $190,000 * 0.055 / [(1 + 0.055)^120 - 1]Using a calculator, we find that the periodic deposit is approximately $1,303.47.To calculate the amount of thefinancial goalthat comes fromdepositsand interest, we can subtract the total amount of deposits from the financial goal:Amount from deposits = $1,303.47 * 120 = $156,416.40Amount from interest = $190,000 - $156,416.40 = $33,583.60Learn more aboutcalculating periodic deposit and determining the contribution of deposits and interest to a financial goalhere:brainly.com/question/30687036#SPJ14...