Bus. Math

posted by .

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.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. calculating annuity

    IF a company will generate 80,000 in annual revenue each year for the next eight years and the interest rate is 8.2% what is the present value of the savings?
  2. Calc

    A person deposits money into a retirement account, which pays 7% interest compounded continuously, at a rate of $1000 per year for 20 years. Calculate: a. The balance of the account at the end of 20 years b. the amount of money actually …
  3. math

    The Derr-McGee Manufacturing Company plans to build a new $50,000 warehouse seven years from now. They plan to accumulate the $50,000 in an account before beginning construction. If money is worth 7% compounded annually, how much must …
  4. math

    How much money would have to be deposited into a compound interest savings account earning 5% each year in order to accumulate $10,000 in 18 years?
  5. Math

    A person wants to establish an annuity for retirement purposes. He wants to make quarterly deposits for 20 years so that he can then make quarterly withdrawals of $5,000 for 10 years. The annuity earns 7.32% interest compounded quarterly. …
  6. Math

    a company will need $30,000 IN 7 YEARS FOR AN ADDTION. TO MEET THIS GOAL THE COMPANY DEPOSITS MONEY IN AN ACCOUNT TODAY THAT PAYS 7% ANNUAL INTREST COMPONDED QUARTERLY. TO FIND THE AMOUNT THAT SHOULD BE INVESTED TO $30,000 IN 7 YEARS. …
  7. MATH

    A company will need 65,000 in 6 years to add an addition. to meet this goal the company deposits money in an account today that pays 5% annual intrest compoundded quarterly. Find the amount that should be invested to total 65,000 in …
  8. math

    At the beginning of every year, a man deposited $ 10,000 in a financial institution which paid compound interest at the rate of 20% p.a. He stopped further deposits after three years. The Money remained invested in the financial institution …
  9. math

    At the beginning of every year, a man deposited $ 10,000 in a financial institution which paid compound interest at the rate of 20% p.a. He stopped further deposits after three years. The Money remained invested in the financial institution …
  10. algebra

    find the periodic payments necessary to accumulate the amount given in a sinking fund. Assume end of period deposits and compounding at the same intervals as deposits. $70,000 in a fund 7% per year, monthly payments for 5 years Thank …

More Similar Questions