A rich uncle wants to make you a millionaire. How much money must he deposit in a trust fund paying 8% compounded quarterly at the time of your birth to yield $1,000,000 when you retire at age 59?

Answer 1

per quarter it is 0.08/4 = 0.02
so every quarter of a year multiply by 1.02
you get it during year 0 and during year 59 so for 60*4 quarters
= 240 quarters
so
1,000,000 = A * 1.02^240 = A * 115.89

A = 1,000,000/115.89
A = $ 8628.87
compounding is a marvel, but if you are getting 8% probably inflation is also happening.