What equal monthly investment is required over a period of 40 years to achieve a balance of...

Question:

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 accounts

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...

See full answer below.

Become a Study.com member to unlock this answer! Create your account

View this answer

Learn more about this topic:

Loading...
What is a Savings Account? - Definition & Types

from Intro to Business: Help and Review

Chapter 24 / Lesson 12
34K

Related to this Question

Explore our homework questions and answers library