MATH ASSIGNMENT FOR MATH GURU
Monthly Deposit: Discussion and Solution
Bruce W. Norcise
Excelsior College
Solution:
Suppose my current age is 25 years.
I hope to retire at the age of 60 years.
Let I would like to have a retirement fund from which I can draw an income of $150,000 per year as an interest. (12500 per month.)
Constant APR is 3.5%
In order to be able to draw $150,000 in interest each year, my retirement account balance must be
Hence my monthly deposit formula is:
Hence my monthly deposit should be:
Hence my monthly deposit is
Value is rounded to two decimal points