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business math

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After looking at the results of her calculations, Naomi has decided to aim for $500,000 savings by the time she retires. She expects to have a starting salary after college of $25,000 to $35,000 and she has taken into account all of the living expenses that will come out of her salary. What will Naomi's annual deposits need to be accumulate $500,000 in a CD at 6%?

  • business math -

    You will have to tell me for how long she will make these annual deposits.
    let's assume it is n years

    so solve for P, the payment

    500000 = P(1.06^n - 1)/.06

    let me know what you got.

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