Question: a) How much must be placed each month into a retirement account earning 4% compounded monthly if the value of the account is to reach

a) How much must be placed each month into a retirement account earning 4% compounded monthly if the value of the account is to reach $ 1,000,000 in 15 years?

b)If the account continues to earn 4% after retirement, how much per year will the account earn?HINT: In other words, "What is the interest amount of $ 1,000,000?"

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!

How much must be placed each month into a retirement account earning 12% compounded monthly if the value of the account is to reach $ 1,000,000 in 25 years? Answer = $?? b) If the account continues...

(1 point) a) How much must be placed each month into a retirement account earning 14% compounded monthly if the value of the account is to reach $1,000,000 in 20 years? Answer $ b) If the account...

a) How much must be placed each month into a retirement account earning 13% compounded monthly if the value of the account is to reach $ 1,000,000 in 20 years? Answer = $ b) If the account continues...

a) How much must be placed each month into a retirement account earning 11% compounded monthly if the value of the account is to reach $ 1,000,000 in 30 years? Answer = $ b) If the account continues...

How much must be placed each month into a retirement account earning 9% compounded monthly if the value of the account is to reach $ 1,000,000 in 25 years? Answer = $ b) If the account continues to...

a) How much must be placed each month into a retirement account earning 14% compounded monthly if the value of the account is to reach $ 1,000,000 in 30 years? Answer = $ b) If the account continues...

How much must be placed each month into a retirement account earning 7% compounded monthly if the value of the account is to reach $ 1,000,000 in 35 years? Answer = $

How much must be placed each month into a retirement account earning 8% compounded monthly if the value of the account is to reach $ 1,000,000 in 35 years? Answer = $____________?

5024.6 5024.6 at least one of the answers above is NOT correct. (1 point) a) How much must be placed each month into a retirement account earning 11% com the value of the account is to reach $...

1. Solve the following unknown variable. (a) n = 300 i = 0.015 PMT = $400 F V = ? (b) P V due = $20, 000 i = 0.0075 PMT = $300 n = ? (c) n = 50 i = 0.0125 F V due = $10, 000 PMT = ? 2. Describe the...

Georgia Isaacson and her son Rubin have been thinking about buying a business. After talking to seven entrepreneurs, all of whom have expressed an interest in selling their operations, the Isaac sons...

The following information was reported in a recent balance sheet issued by Microsoft Corporation: 1. The book value of property and equipment is listed at $147 billion (net of depreciation). Related...

Gencrally, the more liquid an asset is , the grealcr its capucity lo slore value over ine. higher its rate of return. lower its raie of return. Icss purchasing power it hes.

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.