You want to have $ 150,000 in 18 years. How much do you have to deposit each month into an account that pays 3.5% APR?

Total deposit in each month is $ 932.84

Step-by-step explanation:

Step 1: Monthly interest rate.

Monthly Rate = (1+annual rate) 112-1

we have Annual rate = 3.5%

Monthly Rate = (1+0.035) 112-1 = 0.0028709

Step 2: monthly payment

Monthly payment can be determined by using below formula:

A=P*i*1 - (1+i) - n

A = monthly payment amount

P = total pay amount

i = monthly interest rate

n = total number of payments

In this example we have

P=$150000,

i=0.0028709 and

n=12*18=216

Monthly payment = P*i*1 - (1+i) - n

= 150000*0.00287091 - (1+0.0028709) - 216 = 430.6351 - (1.0028709) - 216

Monthly payment = $ 932.84