Homework Help: math

Posted by Salvador on Monday, March 19, 2012 at 1:23am.

Justice wants to invest in a mutual fund for her retireme. If she expects to make 17% annually and wants to retire in 35 years, how much money must she invest per month to have 5 million dollars when she retires?

math - MathMate, Monday, March 19, 2012 at 8:48am
Amount = A
Use the compound interest formula
A(1.17)^35=5000000
log(A)=log(5000000)-35log(1.17)
A=20533.59 (per year)
or
1711.13 per month.

Note: there hasn't been an interest rate as high as 17% for the past thirty years of so in North America.

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