Justin Barber would like to retire in 25 years, and he estimates that he will need $1,000,000 at this time. He plans to deposit $1,000 a month in a retirement account that pays 8% annual interest.
a. | Future value | =-fv(rate,nper,pmt,pv) | |||
= $ 9,51,026.39 | |||||
Where, | |||||
rate | = | 8%/12 | = | 0.006666667 | |
nper | = | 25*12 | = | 300 | |
pmt | = | $ 1,000 | |||
pv | = | 0 | |||
So, | |||||
at the end of 25 years, Justin Barber would have | $ 9,51,026.39 | ||||
b. | Monthly deposit | =-pmt(rate,nper,pv,fv) | |||
= $ 2,628.74 | |||||
Where, | |||||
rate | = | 8%/12 | = | 0.006666667 | |
nper | = | 25*12 | = | 300 | |
pv | = | 0 | |||
fv | = | $ 25,00,000.00 |
Justin Barber would like to retire in 25 years, and he estimates that he will need...
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