In order to accumulate $1,500,000 over 20 years, how much would you have to invest at the beginning of every three months into a fund earning 7.6% compounded quarterly?

Question

Quizplus · Accepted Answer

To find the quarterly investment needed, use the future value of an annuity formula: FV = Pmt * [(1 + r)^nt - 1] / r. Here, FV = $1,500,000, r = 0.076/4, n = 4*20. Solving for Pmt gives approximately $7,973.96.

In Order to Accumulate $1,500,000 Over 20 Years, How Much