Suppose you want to have $600,000 for retirement in 35 years. Your account earns 7% interest.

Question

a) How much would you need to deposit in the account each month?

$

b) How much interest will you earn?

Answer 1

$

a) To deposit $600,000 in 35 years, you would need to deposit $1,068.90 each month.

b) You will earn $420,000 in interest over the 35 years.