# 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.

## 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