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19 November, 21:36

Mitch opened a retirement account that has an annual yield of 4.2% compounding annually. He is planning on retiring in 13 years. How much must he deposit into that account each year so that he can have a total of $1,000,000 by the time he retires?

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  1. 20 November, 01:21
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    P = 4878

    Step-by-step explanation:

    So we'll use the formula

    A = p (1+r/n) ^ (nt)

    A = 1000000

    P is the unknown

    R = 4.2

    N = 13

    T = 13

    1000000 = p (1 + 0.42/13) ^ 169

    1000000 = p (1.032) ^169

    1000000 = p 205

    P = 4878
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