2007 Cssa Q.20 (1 Viewer)

[soap~]

I for the life of me can't figure this one out.

Question is:
Jasmine wishes to take a holiday in 2 years from now and needs to have $3950 saved. She can make monthly contributions into an account which earns interest at 0.8% per month. The amount of her monthly contribution is:
(a) $63.20
(b) $149.94
(c) $181.54
(d) $1967.13

I've been using the future value formula:
3950 = M(((1.08)^24-1)/0.08)
M = 3950 / (((1.08)^24-1)/0.08)
M = 59.16294833

However, this doesn't match up with any of the answers! I've also tried substituting the different answers into the formula, but none of them work out even near $3950.

So, any ideas on this one?

 

[Paj20]

I for the life of me can't figure this one out.

Question is:
Jasmine wishes to take a holiday in 2 years from now and needs to have $3950 saved. She can make monthly contributions into an account which earns interest at 0.8% per month. The amount of her monthly contribution is:
(a) $63.20
(b) $149.94
(c) $181.54
(d) $1967.13

I've been using the future value formula:
3950 = M(((1.08)^24-1)/0.08)
M = 3950 / (((1.08)^24-1)/0.08)
M = 59.16294833

However, this doesn't match up with any of the answers! I've also tried substituting the different answers into the formula, but none of them work out even near $3950.

So, any ideas on this one?

B.... 3950x0.008/ 1.008^24-1

 

[bling05]

3950 = M ((1+0.008)^24-1/0.008)
3950 = M (26.34315511)
M = 3950/26.34315511
= $149.944074
= $149.94 (2dp)

Essentially where you went wrong is you had 0.08 as opposed to 0.008