Jose has determined he needs to have $800,000 for retirement in 30 years. His account earns 6% interest.

a. How much would you need to deposit in the account each month?

b. How much total money will you put into the account?

c. How much total interest will you earn?

A. $285,714.29/360 = $793.65

B. $285,714.29

C. $800,000-285,714.29 = $514,285.71

A. P/T (12)

B. P = A / (1+RT)

C. I = PRT or I = A-P

Answer:

P = $285,714.29

Equation:

P = A / (1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 6%/100 = 0.06 per year.

Solving our equation:

P = 800000 / (1 + (0.06 * 30)) = 285714.28571429

P = $285,714.29

The principal investment required to get a total amount, principal plus interest, of $800,000.00 from simple interest at a rate of 6% per year for 30 years is $285,714.29.