Nestor is 25 years old right now and wants to retire at age 65. He wishes to make monthly deposits in an account paying 6% compounded monthly so when he retires he can withdrawl $1000 in interest each month. How much should Nestor deposit each month?

Question

anonymous · Answer

Do i use the formula FV=PV*(1+r/n)^(nt)?

e.mccormick · Answer

Ah ha!  THis one they gave the period, so that makes it work perfectly.

e.mccormick · Answer

Start by finding the 6% that=1000

anonymous · Answer

when i solve for x i got 50000/3

goformit100 · Answer

First of all for solving this question do you know the conception of : Commercial mathematica

anonymous · Answer

@goformit100 i have no idea what that is.

anonymous · Answer

@e.mccormick is that answer correct when solving for x?

e.mccormick · Answer

50000/3 will work.  Use that as the A you go for in the formula, because at that point the 6% from then on would give you 1000.

anonymous · Answer

use it for A? A is not in the formula that i listed

anonymous · Answer

or do you mean use it for Future Value?

e.mccormick · Answer

Use the same formula as last time, but you are solving for a different value because what you have been given is different.

anonymous · Answer

ok

anonymous · Answer

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