Math help please

Question

Suppose you want to have $300,000 for retirement in 35 years. Your account earns 10% interest. Round your answers to the nearest cent.

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

1. $

b) How much interest will you earn?

1. $

Answer 1

a) PMT = FV(r/n)/((1 + r/n)^nt - 1); PMT = 300000(01/12)/((1 + 0.1/12)^(35·12) - 1) = $79.02;

b) Interest I = FV - PMT·n·t; I = 300000 - 79.02·12·35 = $266811.60