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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?

1144.5039 ( you... View the full answer

• 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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