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Milner is saving for her retirement. She will make a deposit into her IRA account at the end of each quarter for the next 36 years. The expected return on the account is 8%. How much will she have to deposit each quarter to have $650,000 in the account when she retires 36 years from today

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anthougo

Milner will have to deposit $796.81 each quarter to have $650,000 in her retirement account when she retires 36 years from today at 8% interest rate.

How is periodic payment or deposit calculated?

To calculate the quarterly deposit that Milner must make to have $650,000 in her retirement account after 36 years, we can use an online finance calculator.

The online finance calculator will use the future value of $650,000 at 8% for 144 quarters (36 years by 4 quarters) to determine the quarterly deposit.

Data and Calculations:

N (# of periods) = 144 (36 years x 4)

I/Y (Interest per year) = 8%

PV (Present Value) = $0

FV (Future Value) = $650,000

Results:

Quarterly deposit = $796.81

Sum of all periodic payments = $114,740.64 ($796.81 x 144)

Total Interest = $535,259.36

Thus, Milner will have to deposit $796.81 each quarter to have $650,000 in her retirement account when she retires 36 years from today at 8% interest rate.

Learn more about periodic payments or deposits at https://brainly.com/question/13031679

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