Kinda a hard question about finance

At the end of 40 years I want to have $500,000 with interest of 5%. How much money do I have to put in every month to get close to $500,000 in 40 years?

Answer #1

this is straight forward I’ll do it when I get back if no one else has done it.

Answer #2

something between $1050-1100 per month.

Answer #3

Is the interest paid yearly or monthly? If you’re trying to find the present value it’s just a simple calculation

Present value = future value after t periods / (1+r)t

r = interest rate t = no of periods

PV = 500000/(1.05)^40 = $71022.84 / 12 months = $5918.57 per month

Well, it’s not my strongest subject. Not confident about that at all :)

Answer #4

I did a little looking around…here is a basic compound interest calculator…you need to play with a little to get the answer you’re looking for.

http://www.basic-mathematics.com/compound-interest-calculator.html

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