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?
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.