SOLUTION: You would like to have $1,000,000 when you retire in 35 years. How much should you invest each quarter if you can earn a rate of 7.4% compounded quarterly? How much should you d

Question 1119880: You would like to have $1,000,000 when you retire in 35 years. How much should you invest each quarter if you can earn a rate of 7.4% compounded quarterly?
How much should you deposit each quarter?
How much total money will you put into the account?
How much total interest will you earn?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
FV=Payment ((1+i)^n-1/i), i is r/n or .074/4
1000000*0.074=P*(1.(074/4)^140-1), the 140 being the number of quarters in 35 years
18500=P*13.018-1, round at end
P=$1539.36

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