# When you graduate college at the age of 20, you want to start saving up for retirement. If your investment pays a fixed APR of 8.5% and you want to have $500,000 when you retire in 45 years, how much would you need to deposit, at the beginning of each month, to reach this goal?

Asked By Francesca On 09/13/2017 00:07

## Answers

to find your deposited money you will use the compound interest formula A = P*(1+r/m)^tm where your
A = 500,000 P = we will be funding the value and that's your answer as well. r = 8.5% = 0.085, t = 45-20 = 25 and m = as its monthly it will be 12, then plug in the formula
500000 = P*(1+0.085/12)^25*12, 500000 = P*(1+0.0071)^300, 500000 = P*(1.0071)^300,
500000 = P*(8.352), P = 500000/8.352, P = 59866
Answer is $59,866

Answered On 09/15/2017 15:37

Answered On 09/15/2017 15:37

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