## Math Problem Statement

Suppose you want to have $500,000 for retirement in 30 years. Your account earns 7% interest.

a) How much would you need to deposit in the account each month?

## Solution

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## Math Problem Analysis

### Mathematical Concepts

Compound Interest

Future Value of Annuity

Algebra

### Formulas

Future value of an annuity formula: FV = P × [(1 + r)^n - 1] / r

Rearranged formula to find monthly deposit: P = FV / [(1 + r)^n - 1] / r

### Theorems

Compound Interest Theorem

Annuity Growth Formula

### Suitable Grade Level

Grades 10-12

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