Question 1206584: How much must be placed each month into a retirement account earning 7% compounded monthly if the value of the account is to reach $ 1,000,000 in 20 years? and If the account continues to earn 7% after retirement, how much per year will the account earn?
Answer by ikleyn(52776)   (Show Source):
You can put this solution on YOUR website! .
How much must be placed each month into a retirement account earning 7% compounded monthly.
(a) If the value of the account is to reach $ 1,000,000 in 20 years?
(b) and If the account continues to earn 7% after retirement, how much per year will the account earn?
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For the first question, a TWIN problem was solved at this link
https://www.algebra.com/algebra/homework/word/finance/Money_Word_Problems.faq.question.1206598.html
with complete explanations and formulas, so you can use it as your TEMPLATE.
The second question is NONSENSICAL (= makes no sense), since the compounded account
earns different amounts in different years.
Who generates non-sensical questions ?
- Your textbook ?
- Your professor ?
- You on your own, by creating them on your knee in the garage?
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