How much must I deposit today if I want to be able to withdraw $620 per month for six years from an account which earns a nominal rate of three percent, compounded monthly, if withdrawals are made at the beginning of each month

S=48980 shall be deposit if he or she want to withdraw 620 per month for six years from an account.

Explanation:

n=number of periods=6*12=72 periods

i=compound interest rate=3%=3/12=.0025 compounded monthly

R=regular withdraws=$620

S=Sum of Future amount=?

Formula = S=R[ (1+i) ∧n+1-1/i]-R

=620[ (1+.0025) ∧72+1]-1/.0025]-620

=620 (1.0025∧73-1/.0025) - 620

=620[ (1.19994-1) /.0025]-620

=620 (.19994/.0025) - 620

=49600-620

=48980