Question 1061862: You would like to have $550,000 when you retire in 35 years. How much should you invest each quarter if you can earn a rate of 4.8% compounded quarterly?
a) How much should you deposit each quarter?
b) How much total money will you put into the account?
c) How much total interest will you earn?
Answer by addingup(3677)   (Show Source):
You can put this solution on YOUR website! Amount: 550,000
time: 35 years
rate of 4.8%
compounded: 4*year
-.-.-.-.-.-.-.-.-.-.-.
a):
550,000((0.048/4)/((1+(0.048/4))^(4*35)-1) = 1,530.55 per quarter is what you should invest.
Do the operations, remember to follow PEMDAS (Parenthesis-Exponents-Multiplication and Division-Addition and Subtraction.
b) and c) are easy with the information I gave you, you figure them out.
:
John
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