Posted by **alisha** on Thursday, July 24, 2008 at 8:17pm.

At age 5, how much would you have to save per month to have $1 million in your account at age 65, if your investment rate was 10% per year? Assume no taxes and compounding on a monthly basis.

$213.30

$21.23

$274.60

can't be done with these assumptions.

After 20 years, 100 shares of stock originally purchased for $1000 was sold for $5,000. What was the yield on the investment? Choose the closest answer.

19%

5%

12.7%

8%

- math (#2 of 2) -
**drwls**, Friday, July 25, 2008 at 7:20am
Let x be the average yield, expressed as a decimal.

(1+x)^20 = 5000/1000 = 5

log 5 = 20 log(1+x)

log (1+x) = 0.0349585

1+x = 1.0837

x = 8.4%

8% is the closest answer

- math 2 questions need help -
**tchrwill**, Friday, July 25, 2008 at 10:54am
R = Si/[(1+i)^n - 1] where R = the monthly deposit, i = the periodic decimal interest rate, and n = the number of deposits.

R = 1,000,000

i = 10/100(12) = .008333

n = 60(12) = 720

R = 1,000,000(.008333)/[1.008333^720)-1]

R = 8333.333/(393.428 - 1)

R = $21.24

Check:

S = [1.008333^720 - 1]/.008333 = $1,000,262.

## Answer this Question

## Related Questions

- math - At age 5, how much would you have to save per month to have $1 million in...
- finance - At age 5, how much would you have to save per month to have $1 million...
- finance (saving for $1,000,000) - At age 5, how much would you have to save per ...
- finance - Under normal conditions (70% probability), Financing Plan A will ...
- Retirement - 1. I would like to retire in 42 years at the age of 65. The average...
- finance - Suppose that you are 25 years old and you have two options to save ...
- Math - Hi. I have a few math questions I need some help with. Hamid Husain took ...
- Math - Hi. I have a few math questions I need some help with. Hamid Husain took ...
- finance (please review my thought process and ans) - 4. A conservative financing...
- math - interest rates/annuity - Plan to save $5000 per year for retirement with ...

More Related Questions