Asked by Anonymous
you would like to have $800,000 when you retire in 35 years. How much should you invest each quarter if you can earn a rate of 6.7% compounded quarterly?
a) How much should you deposit each quarter?
b) How much total money will you put into the account?
c) How much total interest will you earn?
a) How much should you deposit each quarter?
b) How much total money will you put into the account?
c) How much total interest will you earn?
Answers
Answered by
Reiny
i = .067/4 = .01675
n = 140
P(1.01675^140 - 1)/.01675 = 800,000
p = .....
b) multiply p by 140
c) subtract 800,000 - answer to b)
n = 140
P(1.01675^140 - 1)/.01675 = 800,000
p = .....
b) multiply p by 140
c) subtract 800,000 - answer to b)
Answered by
Devin
Don't understand?
Answered by
Devin
Can you help I don't understand. Thanks
Answered by
Reiny
You do these kind of questions, you MUST know the basic formulas.
I used
Amount = payment( (1+i)^n - 1)/i
I you don't know this, how can you possibly handle this topic of annuities?
I used
Amount = payment( (1+i)^n - 1)/i
I you don't know this, how can you possibly handle this topic of annuities?
Answered by
Devin
What's the answer?
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