Suppose you want to have $400,000 for retirement in 35 years. Your account earns 9% interest. a) How much would you need to depo
1 answer:
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Answer:
a) $135.97
b) $342,892.60
Step-by-step explanation:
a) The attached spreadsheet shows the use of the "payment" function for determining the amount of a payment that will give the desired future value. It shows the deposit needs to be $135.97 per month.
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b) The interest earned is the difference between 420 payments and the account balance. The interest amount is $342,892.60.
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