Determine the regular monthly payment required to have 5000 at the end of 4 years if the investment earns 5.3% interest, compounded monthly. Select one: a. 93.74 b. 86.03 C. 89.61 d. 95.22

## Step 1: Convert the annual interest rate to a monthly rate.### The annual interest rate is 5.3%, so the monthly interest rate is .## Step 2: Calculate the number of compounding periods.### The investment is compounded monthly for 4 years, so the number of periods is .## Step 3: Use the future value of an ordinary annuity formula.### The future value of an ordinary annuity formula is , where is the future value, is the periodic payment, is the periodic interest rate, and is the number of periods. We want to find , so we rearrange the formula: .## Step 4: Plug in the values and solve for P.### .