Question

Jane plans to retire in 30 years and would like to have $500,000 in her account. If the interest on her account is 3.92% compounded monthly, how much should she put into her account every month?

Answer 1

$FV=[P(1+r)^n-1]/r$

$FV=P(1.0392)^30-1/0.0392$

$500000=79.85P$

P=6,262.00 This is the monthly payment.