Accumulate the required amount


Problem:

You plan to buy the house of your dreams in 7 years. You have estimated that the price of the house will be $119,879 at that time. You are able to make equal deposits every month at the end of the month into a savings account at a rate of 11.55 percent, compounded monthly. How much money should you place in this savings account every month in order to accumulate the required amount to buy the house of your dreams?

Note: Explain all calculation and formulas.

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Finance Basics: Accumulate the required amount
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