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Andrea, a self-employed individual, wishes to accumulate a retirement fund of $350,000. How much should she...

Andrea, a self-employed individual, wishes to accumulate a retirement fund of $350,000. How much should she deposit each month into her retirement account, which pays interest at a rate of 2.5%/year compounded monthly, to reach her goal upon retirement 35 years from now? (Round your answer to the nearest cent.)

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Answer #1

Future value of annuity= payment per period * [(1+i)^n-1]/i

i = interest rate per period

n = number of periods

=>

x * [(1+0.025/12)^420 - 1]/(0.025/12) = 350000

=>

deposit per month = 522.07

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