SOLUTION: Suppose you want to have $700,000 for retirement in 25 years. Your account earns 7% interest. a) How much would you need to deposit in the account each month? b) How much i

Algebra ->  Test -> SOLUTION: Suppose you want to have $700,000 for retirement in 25 years. Your account earns 7% interest. a) How much would you need to deposit in the account each month? b) How much i      Log On


   

Question 1174013: Suppose you want to have $700,000 for retirement in 25 years. Your account earns 7% interest.

a) How much would you need to deposit in the account each month?
b) How much interest will you earn?
Answer by ikleyn(52802) About Me  (Show Source):
You can put this solution on YOUR website!
.

To learn the subject, see the lessons
    - Ordinary Annuity saving plans and geometric progressions
    - Annuity Due saving plans and geometric progressions
    - Solved problems on Ordinary Annuity saving plans
    - Withdrawing a certain amount of money periodically from a compounded saving account   (*)
    - Miscellaneous problems on retirement plans   (*)
in this site.

You will find there very detailed treatment of all relevant problems in their logical development
from simple to more complicated.

The closest to your problem are the lessons marked  (*)  in the list.

After reading these lessons, you will learn the entire subject from  "a"  to  "Z".


The material in lessons is given in clear and compact form.


I solved and presented such problems many times at this forum,  and my lessons are quintessence of these solutions/presentations.