SOLUTION: Suppose you want to have $300,000 for retirement in 30 years. Your account earns 6% interest. How much would you need to deposit in the account each month?

Algebra ->  Finance -> SOLUTION: Suppose you want to have $300,000 for retirement in 30 years. Your account earns 6% interest. How much would you need to deposit in the account each month?      Log On


   

Question 1121953: Suppose you want to have $300,000 for retirement in 30 years. Your account earns 6% interest. How much would you need to deposit in the account each month?
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
you want to have 300,000 for retirement in 30 years.
your account earns 6% interest.

use the following calculator.

https://arachnoid.com/finance/

set present value to 0
set future value to 300000
set number of time periods to 30 * 12 = 360
set interest rate percent per time period to 6/12 = .5
set payment to be made at the end of each time period.

click on pmt and the calculator will tell you that the payments at the end of each month need to be 298.65.

the future value is positive because it's money you receive.
the payments are negative because it's money you pay out.

here's the display of my use of this calculator.

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