Answer:
$276.10
Step-by-step explanation:
The balance required to generate $80,000 in annual interest must be determined first. 8% compounded monthly has an APY of ...
(1 +.08/12)^12 -1 ≈ 0.0829995 ≈ 8.3%
To generate $80,000 in interest, the balance must be ...
$80,000/0.0829995 ≈ $963,861.15
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We can use a financial calculator to find the monthly payment required have that balance after 40 years of payments earning interest at 8% compounded monthly. It tells us the payment amount is $276.10.
