Mitch opened a retirement account that has an annual yield of 4.2% compounding annually. He is planning on retiring in 13 years. How much must he deposit into that account each year so that he can have a total of $1,000,000 by the time he retires?

Question

Cornelius Knapp

Mathematics

6 July, 18:47

Mitch opened a retirement account that has an annual yield of 4.2% compounding annually. He is planning on retiring in 13 years. How much must he deposit into that account each year so that he can have a total of $1,000,000 by the time he retires?

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Answers (1)

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Susan Hernandez · Answer 1

P = 4878

Step-by-step explanation:

So we'll use the formula

A = p (1+r/n) ^ (nt)

A = 1000000

P is the unknown

R = 4.2

N = 13

T = 13

1000000 = p (1 + 0.42/13) ^ 169

1000000 = p (1.032) ^169

1000000 = p 205

P = 4878