Suppose you want to have $300,000 for retirement in 25 years. Your account earns 4% annual interest rate, with interest compounded monthly. a) How much would you need to deposit in the account each month? b) How much interest will you have earned when you retire?

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.59TI: New grandparents decide to invest 3200 per month in an annuity for their grandson, The account will...
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Suppose you want to have $300,000 for retirement in 25 years. Your account earns 4% annual interest rate, with interest compounded monthly.

a) How much would you need to deposit in the account each month?

b) How much interest will you have earned when you retire?

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