Question

Suppose you want to have $600,000 for retirement in 20 years. Your account earns 9% interest. How much would you need to deposit in the account each month?

Answer 1

$2,275 a month

Multiply $600,000 by 9 percent to get how much money altogether you got in interest

Change the 9 percent to the decimal 0.09

And get $54,000

Subtract 600,000 by 54,000
To get how much you put in

You get 546,000

You divide 546,000 by 20
To get how much money each year

You get 27,300

You then divide 27,300 by 12
To get how much monthly

You get 2,275