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You'd like to buy a small ranch when you retire in 30 years. You estimate that in 30 years you'll need $4,000,000 to do so.

You'd like to buy a small ranch when you retire in 30 years. You estimate that in 30 years you'll need $4,000,000 to do so. If you can earn 1% per month, how much will you need to invest each month (for 30 years), starting next month, in order to reach your goal? 

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1144.5039 ( you... View the full answer

4 comments
  • rounded to two decimal places would be 1144.50
    • payaljain3
    • May 04, 2018 at 8:18am
  • I would like to see the formula, not excel.
    • chrisspencerccs
    • May 04, 2018 at 8:53am
  • Future value of Ordinary Annuity formula = annuities* (((1+i)^n)-1) / i
    • payaljain3
    • May 04, 2018 at 11:08am
  • 4000000 = annuity * ((1+0.01)^360) - 1 ) / 0.01 4000000= annuity * (34.9464 / 0.01) .......annuity = 4000000 / 3494.964 ......annuity = 1144.50
    • payaljain3
    • May 04, 2018 at 11:08am

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