. Suppose you want to have $400,000 for retirement in 20 years. Your account earns 5% interest compounded monthly. a) How much would you need to deposit in the account each month? $ b) How much interest will you earn? $
I have 3 questions that I am stuck on and keep getting the wrong answers, can you please help!
1. Suppose you want to have $400,000 for retirement in 20 years. Your account earns 5% interest compounded monthly.
a) How much would you need to deposit in the account each month?
$
b) How much interest will you earn?
$
2. You have $400,000 saved for retirement. Your account earns 9% interest compounded monthly. How much will you be able to pull out each month, if you want to be able to take withdrawals for 15 years?
$
3. Jason borrowed $3100 from the bank for 22 months. The bank discounted the loan at 7.8%.
How much was the interest?
$State your result to the nearest penny.
How much did Jason receive from the bank?
$State your result to the nearest penny.
What was the actual rate of interest?
% State your result to the nearest hundredth of a percent.
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