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liraira [26]
3 years ago
5

Regis deposits $5000 into an account for his 10-year-old child the bank has an annual interest rate of 8.5%, compounded monthly.

 
a. What regular monthly deposit amount is needed to make the account worth $1 million by the time the child is 55 years old.
Mathematics
1 answer:
Brut [27]3 years ago
5 0
<span>$123.99 should be deposited every month to arrive at bank balance of $1,000,000.59 after 539 months of depositing with the initial deposit of $5,000 already earning interest up to 540 months or 12 times each year for 45 years.</span>
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