Your daughter is born today and you want her to be a millionaire by the time she is
35 years old. You open an investment account that promises to pay 12% per year.
How much money must you deposit each year, starting on her 1st birthday and
ending on her 35th birthday, so your daughter will have RM1,000,000 by her 35th
n = 35 years, r = 12% per year. To calculate the annual deposit amount, we use the formula of compound interest: FV = PV*(1+r)^n PV = 1000000/(1.12 + 1.12^2 + … + 1.12^35) = $2,068.41 per year.