Jose has determined he needs to have $800,000 for retirement in 30 years. His account earns 6% interest.
a.How much would you need to deposit in the account each month?
b.How much total money will you put into the account?
c.How much total interest will you earn?
A. $285,714.29/360 = $793.65 B. $285,714.29 C. $800,000-285,714.29 = $514,285.71
A. P/T(12) B. P = A/(1+RT) C. I = PRT or I = A-P
Answer: P = $285,714.29
Equation: P = A / (1 + rt)
Calculation: First, converting R percent to r a decimal r = R/100 = 6%/100 = 0.06 per year.
Solving our equation: P = 800000 / ( 1 + (0.06 × 30)) = 285714.28571429 P = $285,714.29
The principal investment required to get a total amount, principal plus interest, of $800,000.00 from simple interest at a rate of 6% per year for 30 years is $285,714.29.
