SOLUTION: Andrea, a self-employed individual, wishes to accumulate a retirement fund of $750,000. How much should she deposit each month into her retirement account, which pays interest at a

Question 1022446: Andrea, a self-employed individual, wishes to accumulate a retirement fund of $750,000. How much should she deposit each month into her retirement account, which pays interest at a rate of 3.5%/year compounded monthly, to reach her goal upon retirement 35 years from now? (Round your answer to the nearest cent.)
Answer by robertb(5830) (Show Source): You can put this solution on YOUR website!
Assuming that this is an ordinary annuity, the amount (or future value) formula is as follows:

For this problem,
A = 750,000
r = 0.035
n = 12
t = 35, and we have to solve for R.
==>
<==> 750000 = r*822.2063619 ==> R = $912.18

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