If I want to retire in 40 years with 3 million dollars, how much to I have to deposit quarterly in an account that yields 8 percent a year?
2006-10-24 18:29:26 · 3 answers · asked by jbethelak 1 in Business & Finance ➔ Investing
$2,635.06 deposited quarterly earning, 8% APY, for 40 years will yield $3,000,003.55.
2006-10-24 19:14:16 · answer #1 · answered by gary s 2 · 0⤊ 1⤋
First convert all values to quarterly: interest becomes 1.942/quarter to get an APY of 8%. Number of periods is 160(40 years x 4 quarters).
Now all you need to do is calculate the future (3MM) worth given the uniform worth (X ) compounded each period at 1.942% for 160 periods.
Answer is $2,814.20.
2006-10-25 02:07:53 · answer #2 · answered by roger_v_kint 3 · 0⤊ 0⤋
on this site there are some calculators you can use to figure how much you need.
http://www.bankrate.com/brm/calculators/manage-money.asp
2006-10-25 01:46:55 · answer #3 · answered by Bryan S 2 · 0⤊ 0⤋