Varian wants to have $500,000 in an investment account six years from now. The account will pay .58 percent interest per month. If he saves money every month, starting one month from now, how much will he have to save each month to reach his goal?Multiple Choicea. $5,391.05b. $5,360.94c. $5,053.86d. $5,614.90e. $6,049.86

d. $5,614.90

Explanation:

The amount that the Varian will save at the end of the every month in order to have $500,000 at the end of the sixth year shall be determined through the future value of annuity formula which shall be calculated as follows:

Future value of annuity=R[((1+i)^n-1)/i]

In the given question

Future value of annuity=$500,000

R=amount that the Varian will be saved per month=?

i=  interest rate per month=0.58%

n= payments involved=6*12=72

$500,000=R[((1+0.58%)^72-1)/0.58%]

R=$5,614.90

So based on the above calculation, the answer shall be d. $5,614.90

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.