Suppose a student wants to be a millionaire in 40 years. If she has an account that pays 8% interest compounded monthly, how much must she deposit each month in order to achieve her goal of having $1,000,000? What is the present value of this annuity?

1 answer

1000000=P/(1.08)^480
1000000=P/1.105103
P=1,105,103