SOLUTION: Andrea, a self-employed individual, wishes to accumulate a retirement fund of $200,000. How much should she deposit each month into her retirement account, which pays interest at a

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Question 1204180: Andrea, a self-employed individual, wishes to accumulate a retirement fund of $200,000. How much should she deposit each month into her retirement account, which pays interest at a rate of 5.5%/year compounded monthly, to reach her goal upon retirement 45 years from now? (Round your answer to the nearest cent.)
Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!

A+=+R%2A%28+%28+%281%2Br%2Fn%29%5E%28nt%29-1%29%2F%28r%2Fn%29%29
For this problem,
A+=+200000
r+=+0.055
n+=+12
t+=+45
200000+=+R%2A%28+%28+%281%2B0.055%2F12%29%5E%2812%2A45%29-1%29%2F%280.055%2F12%29%29
we have to solve for R
200000+=+R%2A%28+10.814710%2F0.004583333333333333%29
200000+=+R%2A%282359.5730909090908%29
R=200000%2F2359.5730909090908
R=84.76 =>she deposit each month into her retirement account