SOLUTION: Suppose you want to have 800,000 for retirement in 20 years. Your account earns 4% interest. How much would you need to deposit in the account each month?

Question 1197208: Suppose you want to have 800,000 for retirement in 20 years. Your account earns 4% interest. How much would you need to deposit in the account each month?
Found 2 solutions by Theo, ikleyn:
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
using the calculator at https://arachnoid.com/finance/, i get the amount of money to be invested at the end of each year = $26,865.40
here are the results from using the calculator.

the present value is 0.
the future value is 800,000.
the interest rate per year is 4%.
the number of years is 20.
payments are made at the end of each year.

Answer by ikleyn(52786) (Show Source): You can put this solution on YOUR website!
.

Formulation of this problem is DEFECTIVE.

It is defective, because it points the periodicity of deposits, but does not provide periodicity of compounding.

RELATED QUESTIONS
Suppose you want to have $800,000 for retirement in 30 years. Your account earns 10%... (answered by CPhill)
Suppose you want to have $400,000 for retirement in 20 years. Your account earns 4%... (answered by Solver92311)
suppose you want to have 500,000 for retirement in 20 years your account earns 4%... (answered by Theo)
Suppose you want to have $400,000 for retirement in 20 years. Your account earns 5%... (answered by Boreal)
Suppose you want to have $400,000 for retirement in 20 years. Your account earns 7%... (answered by Theo,ikleyn)
suppose you want to have 600,000 for retirement in 20 years your account earns 5%... (answered by Theo)
Suppose you want to have $600,000 for retirement in 20 years. Your account earns 10%... (answered by MathLover1)
Suppose you want to have $300,000 for retirement in 20 years. Your account earns 5%... (answered by ikleyn)
Suppose you want to have $300,000 for retirement in 20 years. Your account earns 9%... (answered by ikleyn)