Question

Denise has her heart set on being a millionaire. What payment does Denise need to make at the end of each month over the coming 44 years at 6​% APR to reach her retirement goal of ​$1 ​million?

Answer 1

Answer:

$ 941 796

Explanation:

The present amount with compound interest is given by the following formula:

$A = P (1+\frac{r}{n})^{nt}$

where A = $ 1 000 000

t (years)  = 44

rate         = 6%

               = 0.06

The formula becomes:

1 000 000 = P (1 + (0.06/44) (44*1)

1 000 000 = P (1.0618)

              P = $ 941 796

so the amount needed to be deposited is $ 941 796