Bert wants to retire a millionaire. If he is 40 years old today and already has $40,000 in the bank, what monthly deposit would he need to make beginning one month from today and continuing until he retires on his 65th birthday, if the money will earn 8% per year, compounded monthly?
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A. B. C. D. E.Explanation
The total number of deposits will be 300 (25 years x 12 months/year). On the BAII Plus, press 300 N, 8 divide 12 = I/Y, 40000 PV, 1000000 +/- FV, CPT PMT. On the HP12C, press 300 n, 8 ENTER 12 divide i, 40000 PV, 1000000 CHS FV, PMT. Note that the answer will be displayed as a negative number. Make sure the
BAII Plus has the P/Y value set to 1.