<PRE><B>Question 1061983</B>
You would like to have $750,000 when you retire in 25 years. How much should you invest each quarter if you can earn a rate of 4.2% compounded quarterly?
future value = (payment)[((1+i)^n-1)/i]
750000 = P[(1.042^(4*25)-1)/0.042]
750000 = P[1433.4]
payment = $523.23
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a) How much should you deposit each quarter?:: 523.2307
b) How much total money will you put into the account?:: $52,323.07
c) How much total interest will you earn?:: 750,000-52323 = 697,676.93
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Cheers,
Stan H.
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