SOLUTION: Suppose you want to have 800,000 for retirement in 20 years. Your account earns 4% interest. How much would you need to deposit in the account each month?

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Question 1197208: Suppose you want to have 800,000 for retirement in 20 years. Your account earns 4% interest. How much would you need to deposit in the account each month?
Found 2 solutions by Theo, ikleyn:
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
using the calculator at https://arachnoid.com/finance/, i get the amount of money to be invested at the end of each year = $26,865.40
here are the results from using the calculator.

the present value is 0.
the future value is 800,000.
the interest rate per year is 4%.
the number of years is 20.
payments are made at the end of each year.

Answer by ikleyn(52784) About Me  (Show Source):
You can put this solution on YOUR website!
.

Formulation of this problem is DEFECTIVE.

It is defective, because it points the periodicity of deposits, but does not provide periodicity of compounding.