Question

Suppose you want to have $ 921,867 for retirement in 34 years. Your account earns 5.2 % interest monthly. How much interest will you earn?$_________ (Round to the nearest DOLLAR)

Answer 1

The annuity formula is the following:

$P_N=\frac{d((1+\frac{r}{k})^{N\cdot k}-1)}{(\frac{r}{k})}$

Where: PN is the balance in the account after N years