document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1193477>Question 1193477</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose you want to have $400,000 for retirement in 20 years. Your account earns 5% interest compounded monthly.\r<BR>\n" );
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document.write( "a) How much would you need to deposit in the account each month?\r<BR>\n" );
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document.write( "$\r<BR>\n" );
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document.write( "b) How much interest will you earn?\r<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #825616 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><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=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=825616\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> P=d(1+(r/k))^nk -1)/(r/k)<BR>\n" );
document.write( "multiply through by (r/k)=0.05/12; P=400,000<BR>\n" );
document.write( "1666.67=d{(1.00416667)^240-1}=d=1.7126, round at the end<BR>\n" );
document.write( "d=$973.16<BR>\n" );
document.write( "the 240 payments of this over 20 years are $233,558.40<BR>\n" );
document.write( "the interest is the difference between that and $400,000=$166,441.60\r<BR>\n" );
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