document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1061850>Question 1061850</A>: <I><SPAN STYLE=\"word-break: break-all;\"> How much should you invest each month in order to have $800,000 if your rate of return is 5.3% compounded monthly and you want to achieve your goal in 40 years?\r<BR>\n" );
document.write( "\n" );
document.write( "How much interest will you earn?\r<BR>\n" );
document.write( "\n" );
document.write( "How much should you invest each month in order to have $800,000 if you want to achieve your goal in 20 years?\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "If you deposit the amount you need to achieve your goal in 20 years, how much will your savings be worth after 10 years?<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #676707 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=676707\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> rate of return is 5.3% compounded monthly.<BR>\n" );
document.write( "number of years = 40.<BR>\n" );
document.write( "future value = 800,000\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "interest rate per month is 5.3% / 12 = .4416666....%<BR>\n" );
document.write( "number of time periods if 40 * 12 = 480<BR>\n" );
document.write( "payment required at the end of each month is equal to 484.5267545\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "your total payments are 480 * 484.5267545 = 232,572.8422\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "total interest earned would be 800,000 minus 232,572.8422 = 567,427.1578\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "if you want to achieve your goal in 20 year, you would have to invest 1879.790424 at the end of each month for 240 months.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "you will have 800,000 after 20 years.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "if you deposit that money for an additional 10 years at the same rate of interest per year compounded annually, then you will have  1,357,560.674.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "you can use an online calculator to get the results similar to this.<BR>\n" );
document.write( "they might not be right on because of possible rounding errors, but they'll be close.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "that online calculator can be found at <a  rel=nofollow HREF= \"http://arachnoid.com/finance/\" target = \"_blank\">http://arachnoid.com/finance/</a>\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "here's pictures of my solution using this calculator.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the first picture shows the payment required at the end of each month for 40 years at 5.3% interest per year compounded monthly.<BR>\n" );
document.write( "your future value is set at 800,000.<BR>\n" );
document.write( "your number of time periods is set at 40 * 12 = 480 months.<BR>\n" );
document.write( "your interest rate percent per time period is set at 5.3/12 = .4416666666.... rounded as required by the calculator.<BR>\n" );
document.write( "your monthly payments are shown as 484.53.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2016/121802.jpg\" alt=\"$$$\" </>\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the second pictures shows the payment required at the end of each month for 20 years at 5.5% interest per year compounded monthly.<BR>\n" );
document.write( "your future value is set at 800,000.<BR>\n" );
document.write( "your number of time periods is set at 20 * 12 = 240 months.<BR>\n" );
document.write( "your interest rate percent per time period is set at 5.3/12 = .4416666666.... rounded as required by the calculator.<BR>\n" );
document.write( "your monthly payments are shown as 1879.79.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2016/121803.jpg\" alt=\"$$$\" </>\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "the third picture shows the future value of 800,000 invested at 5.3% interest per year compounded monthly for 10 years.<BR>\n" );
document.write( "your present value is set at 800,000.<BR>\n" );
document.write( "your monthly payments are set at 0.<BR>\n" );
document.write( "your number of time periods is set at 10 * 12 = 120.<BR>\n" );
document.write( "your interest rate percent per time period is set at 5.3/12 = .4416666666.... rounded as required by the calculator.<BR>\n" );
document.write( "your future value is 1,357,561.21\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2016/121804.jpg\" alt=\"$$$\" </>\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "if you need a tutorial on financial formulas, one can be found here:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<a  rel=nofollow HREF= \"https://www.algebra.com/algebra/homework/Finance/THEO-2016-04-29.lesson#notes\" target = \"_blank\">https://www.algebra.com/algebra/homework/Finance/THEO-2016-04-29.lesson#notes</a><BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );