Question

You think you need $1.5 million and your retirement advisor thinks you will average 8% a year on your account. How much will you need to contribute a year to your account if you have 40 years to your retirement?

Answer 1

Let the amount needed at the end of year year be P
P(1.08^40 - 1)/.05 = 1.5 million
P(259.0565187
P = 5790.24