Homework Help: Bus. Math

Posted by julie on Thursday, November 2, 2006 at 11:25am.

How much money should be deposited each year for 30 years at 3% to accumulate $1000,000?

I find that an EXCEL spreadsheet is very helpful for these kinds of problems.

If one deposits an amount P, growing for 30 years, the amount will grow to P*(1.03)^30. You want to solve for P such that:
P*1.03^30 + P*1.03^29 + ... P*1.03^1 = 1,000,000. Factor out the P, use EXCEL to calculate the sumation series, divide the 1M by the sumation and tada, you have your answer.

Hi! Very nice site! Thanks you very much! 4rzKJXQSgFyJn5

No one has answered this question yet.

Answer this Question

Related Questions

math - How much money would have to be deposited into a compound interest ...
math - if naomi wants to accumulate 1,000,000 by investing money every year into...
math - The Derr-McGee Manufacturing Company plans to build a new $50,000 ...
Math - Please help check my answers to make sure they are correct. I used the &...
MATH - Please help check my answers to make sure they are correct. I used the &...
business math - If Naomi decides that she will invest $3,000 per year in a 6% ...
Business Math - If i wanted to accumulate a million dollars by investing money ...
math - College is expected to cost $150,000 per year in 18 years, how much ...
trig - starting salary for a job is 30,000 with a guaranteed raise of $5,000 ...
Math - How much money should be deposited today in an account that earns 6.5% ...

For Further Reading

First Name:
School Subject:
Answer: