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