SOLUTION: suppose you want to have 500,000 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 1203860: suppose you want to have 500,000 for retirement in 20 years your account earns 4% interest how much would you need to deposit in the account each month
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
calculator used is at https://arachnoid.com/finance/

monthly compounding is assumed.
presen value = 0
future value = 500,000
number of time periods = 20 years * 12 = 240 months.
interest rate per time period = 4% per year / 12 = .333333333....% per month.
payments are made at the end of each month.
calculator says that you need to invest 1363.23 at the end of each month so that you can have 500,000 at the end of the investment period.
here are the results from using the calculator.