What equal monthly investment is required over a period of 40 years to achieve a balance of $2,200,000 in an investment account that pays monthly interest of 0.25% if monthly interest is 2.5%?
Savings account are used to save up money for a future time. They pay an interest which is compounded usually monthly. The key to accumulating a larger amount is to get the best interest and let it compound for a long time.
Answer and Explanation:
The answer is at .25% monthly interest for 40 years, the monthly investment required to achieve a balance of $2,200,000 is $2,375.66.
At 2.5 % interest...
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from Intro to Business: Help and ReviewChapter 24 / Lesson 12