Asked by Karim Moukrem on May 21, 2024
Verified
Marvin hopes to accumulate $1,000,000 in his retirement plan by making equal contributions at the end of each month for 35 years. He is planning to earn 10.8% compounded monthly. What amount should he deposit every month?
A) $119.90
B) $213.87
C) $569.05
D) $963.27
E) $2,380.95
Compounded Monthly
Interest calculation method where interest earned is added to the principal so that, from that moment on, the interest that has been added also earns interest.
Equal Contributions
A setup where all participants in a financial arrangement contribute the same amount.
Retirement Plan
A financial strategy designed to provide individuals with income or assets to rely on after they have ceased working, often involving savings, investments, and other financial products.
- Ascertain the regular savings necessary to attain a specific financial aim within an allocated period.
- Apprehend the role of varied compounding frequencies in the improvement of investment yields and the plans for paying off loans.
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Learning Objectives
- Ascertain the regular savings necessary to attain a specific financial aim within an allocated period.
- Apprehend the role of varied compounding frequencies in the improvement of investment yields and the plans for paying off loans.
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