document.write( "Question 1191371: Suppose you want to have $600,000 for retirement in 30 years. Your account earns 10% interest. How much would you need to deposit in the account each month? \n" ); document.write( "
Algebra.Com's Answer #849213 by ikleyn(52909)\"\" \"About 
You can put this solution on YOUR website!
.
\n" ); document.write( "Suppose you want to have $600,000 for retirement in 30 years. Your account earns 10% interest.
\n" ); document.write( "How much would you need to deposit in the account each month?
\n" ); document.write( "~~~~~~~~~~~~~~~~~~~~~~~~~~~\r
\n" ); document.write( "
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "        Regarding the post by  @CPhill,  without formulas and explanations,  it has zero educational value.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "        Besides this,  the value, presented as the answer in his post,  is factually incorrect.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "        I came to bring a correct solution.\r
\n" ); document.write( "
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "
\r\n" );
document.write( "I will assume that an ordinary annuity is considered, i.e. deposits are made at the end of each month.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Then the formula for the monthly deposited amount P is\r\n" );
document.write( "\r\n" );
document.write( "    P = \"%28FV%2Ar%29%2F%28%281%2Br%29%5En-1%29%29\",\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "where FV is the future value;  r is the effective monthly rate presented as a decimal; \r\n" );
document.write( "n is the number of payments/deposit.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "In this problem,  FV = $600,000;  r = 0.1/12;  n = 30*12 = 360.  So,\r\n" );
document.write( "\r\n" );
document.write( "    P = \"%28600000%2A%280.1%2F12%29%29%2F%28%281%2B0.1%2F12%29%5E360-1%29\" = 265.43  (rounded to the closest greater cent).\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "ANSWER.  You need to deposit  $265.43 at the end of each month.\r\n" );
document.write( "
\r
\n" ); document.write( "\n" ); document.write( "Solved correctly.\r
\n" ); document.write( "
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( " \n" ); document.write( "
\n" );