View the step-by-step solution to:

A rich uncle wants to make you a millionaire. How much money must he deposit in a trust fund paying 10% compounded quarterly at the time of your

A rich uncle wants to make you a millionaire. How much money must he deposit in a trust fund paying 10% compounded quarterly at the time of your birth to yield $1,000,000 when you retire at age 58? (Round your answer to the nearest cent.) Show all work.

Top Answer

he has to deposit... View the full answer

Sign up to view the full answer

Other Answers

Thus Payment per... View the full answer

1 comment
  • sorry i used the wron formula here you are making one time payment...... so the money to be deposited is here r= 10% = 0.1 and n=4 so P = A / (1+r/n)^{nt} = 1000000 / (1+0.10/4)^{58*4} ~ $3251.35
    • expert_vrinda
    • Apr 03, 2018 at 10:04am

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online