Suppose you want to have $600,000 for retirement in 35 years. Your account earns 5% interest. How
much would you need to deposit in the account each month?
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To have $600,000 for retirement in 35 years at 5% interest, one would need to deposit $528.13 in the account each month.What are periodic deposits?Periodic deposits are monthly cash inflows into a retirement account that accumulates interest by compounding.To find periodic deposits, we can use an online finance calculator, defining the parameters as follows.N (# of periods) = 420 months (35 years x 12)I/Y (Interest per year) = 5%PV (Present Value) = $0FV (Future Value) = $600,000 Results:Monthly Deposits (PMT) = $528.13Sum of all periodic deposits = $221,814.60Total Interest = $378,185.40Thus, monthly deposits of $528.13 can accumulate to $600,000 in 35 years at 5% interest.Learn more about periodic payments at https://brainly.com/question/13031679#SPJ1