Question

6. You deposit $400 each month into an account earning 5% interest compounded monthly.

a) How much will you have in the account in 35 years?

b) How much total money will you put into the account?

c) How much total interest will you earn?

7. Suppose you want to have $500,000 for retirement in 25 years. Your account earns 7% interest.

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

b) How much interest will you earn?

8. u want to be able to withdraw $45,000 each year for 20 years. Your account earns 6% interest.

a) How much do you need in your account at the beginning?
b) How much total money will you pull out of the account?
c) How much of that money is interest?

Answer 1