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)
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?
5 answers
Don't understand?
Can you help I don't understand. Thanks
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?
What's the answer?