SOLUTION: You would like to have $750,000 when you retire in 25 years. How much should you invest each quarter if you can earn a rate of 4.2% compounded quarterly? a) How much should you

Question 1061983: You would like to have $750,000 when you retire in 25 years. How much should you invest each quarter if you can earn a rate of 4.2% 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?
Found 2 solutions by stanbon, MathTherapy:
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
You would like to have $750,000 when you retire in 25 years. How much should you invest each quarter if you can earn a rate of 4.2% compounded quarterly?
future value = (payment)[((1+i)^n-1)/i]
750000 = P[(1.042^(4*25)-1)/0.042]
750000 = P[1433.4]
payment = $523.23
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a) How much should you deposit each quarter?:: 523.2307
b) How much total money will you put into the account?:: $52,323.07
c) How much total interest will you earn?:: 750,000-52323 = 697,676.93
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Cheers,
Stan H.
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Answer by MathTherapy(10552) (Show Source): You can put this solution on YOUR website!
You would like to have $750,000 when you retire in 25 years. How much should you invest each quarter if you can earn a rate of 4.2% 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?

Quarterly investment:
Based on this info. you should be able to do b) and c)
I can't do everything for you.
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