SOLUTION: Suppose you want to have $500,000 for retirement in 25 years. Your account earns 6% interest. a) How much would you need to deposit in the account each month? b) How mu

Question 1163414: Suppose you want to have $500,000 for retirement in 25 years. Your account earns 6% interest.
a) How much would you need to deposit in the account each month?

b) How much interest will you earn?

Answer by ikleyn(52908) (Show Source): You can put this solution on YOUR website!
.

Usually, in such problems, it is assumed that the compound period is the same as withdrawing period.

But, in order for the formulation be correct, the problem should say it directly, openly and explicitly in the text.

Me, the tutor, should not base my solution on my guessing.

In short terms, to solve the problem PROPERLY, a compound period must be specified.

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