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.

## Answer This Question

## Related Questions

- math - How much money would have to be deposited into a compound interest ...
- Math - A person wants to establish an annuity for retirement purposes. He wants ...
- math - The Derr-McGee Manufacturing Company plans to build a new $50,000 ...
- Math - The winner of a popular lottery is offered one of two options: i) a lump ...
- Maths Investments - Kate is thinking about investing $60 000 for 4 years. She ...
- Maths (Investments) - Kate is thinking about investing $60 000 for 4 years. She ...
- Calc - A person deposits money into a retirement account, which pays 7% interest...
- math - if naomi wants to accumulate 1,000,000 by investing money every year into...
- Math - 1. If one wishes to accumulate a 30,000-fund in 5 years, how much should ...
- Finance - Your Uncle has two alternative inheritence for you. A. You receive ...

More Related Questions