Answer:
Monthly deposit= $512.37
Explanation:
Giving the following information:
Future value= $1,000,000
Number of periods= 60 - 21= 39*12= 468 months
Interest rate= 0.09/12= 0.0075
To calculate the monthly deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,000,000*0.0075) / [(1.0075^468) - 1]
A= $512.37
