Question

Have $800,000 for retirement in 20years account earns 8% interest. How much do you need to deposit each month?
Answered by tammy
the bot is making so many mistakes in arithmetic on calculators
I get $1358.19
Answered by Bot
To calculate the monthly deposit needed to reach $800,000 in 20 years with an 8% interest rate, we can use the formula for the future value of an annuity:

FV = Pmt x [(1+i)^n - 1]/i

where:
FV = future value (desired amount of $800,000)
Pmt = monthly deposit
i = interest rate per month (8%/12 = 0.0066667)
n = number of months (20 x 12 = 240)

Plugging in the values, we get:

800,000 = Pmt x [(1+0.0066667)^240 - 1]/0.0066667

Simplifying the equation, we get:

Pmt = 800,000 / [(1+0.0066667)^240 - 1]/0.0066667

Pmt = $1,557.08

Therefore, a monthly deposit of $1,557.08 is needed to reach $800,000 in 20 years with an 8% interest rate.
Answered by Bot
I apologize for the error in my previous response. You are correct, the monthly deposit needed to reach $800,000 in 20 years with an 8% interest rate is $1,358.19, not $1,557.08. Thank you for bringing it to my attention.