# Algebra

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Suppose a student wants to be a millionaire in 40 years. If she has an account that pays 8% interest compounded monthly, how much must she deposit each month in order to achieve her goal of having \$1,000,000? What is the present value of this annuity?

• Algebra -

1000000=P/(1.08)^480
1000000=P/1.105103
P=1,105,103

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