Max is trying to save for retirement. He is going to deposit the same amount each month for 20 years into an account that pays 4.2% compounded interest. At the end of 20 years he would like to have $350,000, how much does he need to deposit each month (round to the nearest dollar)?
FV=P{[1 + R]^N - 1/ R}
350,000 = P x [ 1 + 0.042/12]^(20*12) - 1 / [0.042/12]
350,000 = P x 375.134952....
P = 350,000 / 375.134952....
PMT =$933.00 monthly payment that must be made each month.
