How much should you deposit at the end of each month into an investment account that pays 8.5% compounded monthly to have $3 million when you retire in 43 years? How much of the $3 million comes from interest? Click the icon to view some finance formulas. In order to have $3 million in 43 years, you should deposit $ each month. (Round up to the nearest dollar.)
How much should you deposit at the end of each month into an investment account that pays 8.5% compounded monthly to have $3 million when you retire in 43 years? How much of the $3 million comes from interest? Click the icon to view some finance formulas. In order to have $3 million in 43 years, you should deposit $ each month. (Round up to the nearest dollar.)
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Question
![How much should you deposit at the end of each month into an investment account that pays 8.5% compounded monthly to have $3 million when you retire in 43
years? How much of the $3 million comes from interest?
Click the icon to view some finance formulas.
In order to have $3 million in 43 years, you should deposit $
each month.
(Round up to the nearest dollar.)
Formulas
In the following formulas, P is the deposit made at the end of each compounding
period, r is the annual interest rate of the annuity in decimal form, n is the number
of compounding periods per year, and A is the value of the annuity after t years.
nt
P
1+
- 1
P[(1 + n)* - 1]
A =
A =
P =
r
nt
In the following formulas, P is the principal amount deposited into an account, ris
the annual interest rate in decimal form, n is the number of compounding periods
per year, and A is the future value of the account after t years.
nt
A = P(1 + r)*
Print
Done](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F681945d9-660b-4b64-bf75-7e0e8f0af942%2F3ab4b5bb-8180-4def-8228-cfa52804b782%2Frpy447o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:How much should you deposit at the end of each month into an investment account that pays 8.5% compounded monthly to have $3 million when you retire in 43
years? How much of the $3 million comes from interest?
Click the icon to view some finance formulas.
In order to have $3 million in 43 years, you should deposit $
each month.
(Round up to the nearest dollar.)
Formulas
In the following formulas, P is the deposit made at the end of each compounding
period, r is the annual interest rate of the annuity in decimal form, n is the number
of compounding periods per year, and A is the value of the annuity after t years.
nt
P
1+
- 1
P[(1 + n)* - 1]
A =
A =
P =
r
nt
In the following formulas, P is the principal amount deposited into an account, ris
the annual interest rate in decimal form, n is the number of compounding periods
per year, and A is the future value of the account after t years.
nt
A = P(1 + r)*
Print
Done
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