SOLUTION: Suppose that your long lost relative recently left you an inheritance of $300,000. You decide to invest the money into an account: You receive monthly payments while it earns 3.2

Algebra ->  Coordinate Systems and Linear Equations -> SOLUTION: Suppose that your long lost relative recently left you an inheritance of $300,000. You decide to invest the money into an account: You receive monthly payments while it earns 3.2      Log On


   

Question 926761: Suppose that your long lost relative recently left you an inheritance of $300,000. You decide to invest the
money into an account:
You receive monthly payments while it earns 3.25% compounded monthly. If you
want the payments to last for 40 years, how much should your payments be each month?


Thanks
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
use this online calculator to find the payments per month you will receive.

http://www.arachnoid.com/lutusp/finance.html

make the following entries into that calculator.
pv = 300,000
fv = 0
np = 40 * 12 = 480
ir = 3.25 / 12 = .270833
select payment at end of time period.
click on pmt.
the calculator should tell you that the monthly payment will be 1117.62 per month.