Question

The average age of engineering students at graduation is a little over 23 years. This means that the working career of most engineers is almost exactly 500 months. How much would an engineer need to save each month to become a millionaire by the end of her working career

Answer 1

$450.18

Step-by-step explanation:

Missing word "Assume a 6% interest rate, compounded monthly?"

FV = P/i*[(1+i)^n - 1]

FV = 1,000,000. P = ? , I = 6%/12 = 0.5%

1,000,000 = P/0.005[(1 + 0.005)^500 - 1)

1,000,000 = P/0.005[(1.005)^500 - 1)

5,000 = P[12.1068 - 1]

5,000 = P[11.1068]

P = 5,000/11.1068

P = 450.174667771

P = $450.18

Thus, the engineer needs to save $450.18 each month to become a millionaire by the end of her working career.