SOLUTION: Andrea, a self-employed individual, wishes to accumulate a retirement fund of $750,000. How much should she deposit each month into her retirement account, which pays interest at a

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Question 1022446: Andrea, a self-employed individual, wishes to accumulate a retirement fund of $750,000. How much should she deposit each month into her retirement account, which pays interest at a rate of 3.5%/year compounded monthly, to reach her goal upon retirement 35 years from now? (Round your answer to the nearest cent.)
Answer by robertb(5830) About Me  (Show Source):
You can put this solution on YOUR website!
Assuming that this is an ordinary annuity, the amount (or future value) formula is as follows:
A+=+R%2A%28+%28+%281%2Br%2Fn%29%5E%28nt%29-1%29%2F%28r%2Fn%29%29
For this problem,
A = 750,000
r = 0.035
n = 12
t = 35, and we have to solve for R.
==>750000+=++R%2A%28+%28+%281%2B0.035%2F12%29%5E%2812%2A35%29-1%29%2F%28.035%2F12%29%29
<==> 750000 = r*822.2063619 ==> R = $912.18