Jack wants to retire a millionaire. If he is 30 years old today and already has $30,000 in the bank, what monthly payment 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 420 (35 years x 12 months/year). On the BAII Plus, press 420 N, 8 divide 12 = I/Y, 30000 PV, 1000000 +/- FV, CPT PMT. On the HP12C, press 420 n, 8 ENTER 12 divide i, 30000 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.