Question
Asked Nov 9, 2019

how much money would you need to put aside at the beginningmof each month for the next 30 years in order to have $1 million, with3% compounded monthly

check_circleExpert Solution
Step 1

Calculate the monthly payment as follows:

MS-Excel --...

=PMT(3%/12,30*12,-1000000, 1)
Function Arguments
X
PMT
Rate 3%/12
=0.0025
Nper 30 12
=360
Pv
=number
Fv
=1000000
-1000000
Туре
= 1
1
1711.760935
Calculates the payment for a loan based on constant payments and a constant interest rate.
Rate is the interest rate per period for the loan. For example, use 6%/4 for
quarterly payments at 6% APR.
Formula result
1711.760935
Help on this function
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Cancel
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=PMT(3%/12,30*12,-1000000, 1) Function Arguments X PMT Rate 3%/12 =0.0025 Nper 30 12 =360 Pv =number Fv =1000000 -1000000 Туре = 1 1 1711.760935 Calculates the payment for a loan based on constant payments and a constant interest rate. Rate is the interest rate per period for the loan. For example, use 6%/4 for quarterly payments at 6% APR. Formula result 1711.760935 Help on this function ок Cancel OR

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