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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?

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A=P[(1+i)^n -1]/i
=>
P=Ai/[(1+i)^n -1]
=1000000*(0.08/12)/((1+0.08/12)^480-1)
=286.45023 per month.

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