SOLUTION: How much must be placed each month into a retirement account earning 7% compounded monthly if the value of the account is to reach $ 1,000,000 in 20 years? and If the account conti

Question 1206584: How much must be placed each month into a retirement account earning 7% compounded monthly if the value of the account is to reach $ 1,000,000 in 20 years? and If the account continues to earn 7% after retirement, how much per year will the account earn?
Answer by ikleyn(52776)   (Show Source): You can put this solution on YOUR website!
.
How much must be placed each month into a retirement account earning 7% compounded monthly.
(a) If the value of the account is to reach $ 1,000,000 in 20 years?
(b) and If the account continues to earn 7% after retirement, how much per year will the account earn?
~~~~~~~~~~~~~~~~~~~~~~

For the first question, a TWIN problem was solved at this link

https://www.algebra.com/algebra/homework/word/finance/Money_Word_Problems.faq.question.1206598.html

with complete explanations and formulas, so you can use it as your TEMPLATE.

The second question is NONSENSICAL (= makes no sense), since the compounded account
earns different amounts in different years.

Who generates non-sensical questions ?

        - Your textbook ?

        - Your professor ?

        - You on your own, by creating them on your knee in the garage?

RELATED QUESTIONS
How much must be placed each month into a retirement account earning 9% compounded... (answered by ikleyn)

How much must be placed each month into a retirement account earning 12%compounded month... (answered by ikleyn)

Jennifer is the owner of a video game and entertainment software retail store. She is... (answered by Theo)

1)Suppose you invest $150 at the end of each month for 6 years into an account earning 6% (answered by ikleyn)

You deposit $300at the end of each month into an account earning 8% interest... (answered by ikleyn)

You deposit $100 each month into an account earning 5% interest compounded monthly. a)... (answered by Theo)

You have $1000 to start a retirement account. The 1st month, you deposit $1000, plus your (answered by Theo)

Since he was 21 years old, Ben has been depositing $200 at the end of each month into a... (answered by Theo)

You deposit $200 each month into an account earning 7% interest compounded monthly. a) (answered by CPhill,ikleyn)