SOLUTION: how much money would i have to put in a cd to draw $500 a month joinnow2000@aol.com
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Question 310669: how much money would i have to put in a cd to draw $500 a month joinnow2000@aol.com
Found 2 solutions by Fombitz, solver91311:
Answer by Fombitz(32388) (Show Source): You can put this solution on YOUR website!
At what percent interest?
$500/mo indefinitely or for a set period of time?
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
That would depend a great deal on the annual interest rate and, to a lesser extent, on the compounding frequency, and if you are just considering an investment that will earn that much that will be allowed to remain in the account or if you want to actually draw out $500.00 every month as an annuity payment.
Let's presume 
annual interest expressed as a decimal. Let's assume that the institution actually pays one-twelfth of the annual interest each month and that you want a monthly pay annuity.
Let 
be the principal amount invested in the CD. Then you need:
Solving for
Right now, June 2, 2010, the best you will be able to do is 
John
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