SOLUTION: kim is willling to invest $250 per month from the time she is 23 until the time she retires at the age of 58. She will invest her money into a money market account earning 8% inter

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: kim is willling to invest $250 per month from the time she is 23 until the time she retires at the age of 58. She will invest her money into a money market account earning 8% inter      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


   



Question 1016374: kim is willling to invest $250 per month from the time she is 23 until the time she retires at the age of 58. She will invest her money into a money market account earning 8% interest, compounded annually.
I don't understand how to solve this word problem or how to go about solving it. I keep getting an answer in the 40,000s but the answer is supposed to be $516,950.41.

Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
It is [(1.08)^35]-1
Then multiply by $250 and divide by (.08/12)
That will bring you to the answer.
From what I have used, I would ask about why not (1+(.08/12)^420 -1 and then multiplying by $250/(.08/12)