document.write( "Question 1136459: Jada wants to invest in a mutual fund for her retirement. If she expects to make 17% interest, and wants to retire in 35 years, how much money must she invest per month to have 5,000,000 when she retire? \n" ); document.write( "
Algebra.Com's Answer #754247 by ikleyn(52858)\"\" \"About 
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\n" ); document.write( "\n" ); document.write( "The formulation is not precisely correct, so I edited it:\r
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document.write( "    Jada wants to invest in a mutual fund for her retirement. If \"highlight%28cross%28she_expects_to_make%29%29\" the account is 17% annual interest compounded monthly, \r\n" );
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document.write( "    and she wants to retire in 35 years, how much money must she invest \"highlight%28cross%28per%29%29\" at the end of each month to have 5,000,000 when she retire?\r\n" );
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document.write( "It is a classic Ordinary Annuity saving plan. The general formula is \r\n" );
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document.write( "    FV = \"P%2A%28%28%281%2Br%29%5En-1%29%2Fr%29\",    \r\n" );
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document.write( "where  FV is the future value of the account;  P is the monthly payment (deposit); r is the monthly percentage yield presented as a decimal; \r\n" );
document.write( "n is the number of deposits (= the number of years multiplied by 12, in this case).\r\n" );
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document.write( "From this formula, you get for for the monthly payment \r\n" );
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document.write( "    P = \"FV%2A%28r%2F%28%281%2Br%29%5En-1%29%29\".     (1)\r\n" );
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document.write( "Under the given conditions, FV = 5000000;  r = 0.17/12;  n = 35*12.  So, according to the formula (1), you get for the monthly payment \r\n" );
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document.write( "    P = \"5000000%2A%28%28%280.17%2F12%29%29%2F%28%281%2B0.17%2F12%29%5E%2835%2A12%29-1%29%29\" = 192.98 (rounded with 2 decimal places to the nearest greater value).\r\n" );
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document.write( "Answer.  The necessary monthly deposit value is 192.98.\r\n" );
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\n" ); document.write( "\n" ); document.write( "On Ordinary Annuity saving plans,  see the lessons\r
\n" ); document.write( "\n" ); document.write( "    - Ordinary Annuity saving plans and geometric progressions\r
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\n" ); document.write( "\n" ); document.write( "The lessons contain  EVERYTHING  you need to know about this subject,  in clear and compact form.\r
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\n" ); document.write( "\n" ); document.write( "When you learn from these lessons,  you will be able to do similar calculations in semi-automatic mode.\r
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