Remember that
The formula for the future value of an ordinary annuity is equal to:
[tex]FV=P\lbrack\frac{(1+ \frac{r}{n} )^{nt} -1}{ \frac{r}{n} }\rbrack[/tex]
where
FV is the future value
P s the periodic payment
r is the interest rate in decimal form
n is the number of times the interest is compounded per year
t is the number of years
In this problem we have
FV=$122,000
r=2.45%=0.0245
n=12
t=17 years
P=?
substitute the given values
[tex]122,000=P\lbrack\frac{(1+\frac{0.0245}{12})^{(12\cdot17)}-1}{\frac{0.0245}{12}}\rbrack[/tex]
solve for P
P=$482.72 ------> round to the nearest dollar
P=$483
