Mike wants to invest money every month for 30 years. He would like to have $500000 at the end of 30 years. For each investment option, how much does he need to invest each month? (Use Formula and show your work)

a. 10.2% a compound monthly

b. 5.1% a compound monthly

Use formula in picture

Payment of an Annuity So far we have calculated the FV and PV today we will determine the PMT (regular payment) Rearranging the formula for FV and PV of an ordinary annuity for PMT: PMT[(1+i)"-1 PMT [1-(1+i)"] FV PV i PMT i FV (1+1)"-1 PMT i.PV 1-(1+r)