Math work, due soon!

Question

Suppose you want to have $700,000 for retirement in 30 years. Your account earns 10% interest.

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

$

b) How much interest will you earn?

$

Answer 1

517/88 monthly for 30 years at 10% compounded monthly to reach $700000

interest = 700000-360(517.88) = $513,562.48 interest

use amortization formulas

A=700000 = P(1+r/n)^nt

n=12, P=Principal, t=30 years

PMT = Pr(1+r)^n/[(1+r)^n] -1]