Asked by Gabriel
Use the savings plan formula to answer the following question.
At age 43, you start saving for retirement. If your investment plan pays an APR of 4% and you want to have $ 1million when you retire in 22 years, how much should you deposit monthly?
At age 43, you start saving for retirement. If your investment plan pays an APR of 4% and you want to have $ 1million when you retire in 22 years, how much should you deposit monthly?
Answers
Answered by
oobleck
Your turn to apply the Future Value formula
Answered by
mathhelper
Don't know what your "savings plan formula" is, but this is how this question
is done:
i = .04/12 = .003333..
n = 22*12 = 264
paym = ?
amount = 1,000,000
paym (1.003333...^264 - 1)/.003333... = 1,000,000
I got paym = 2368.48
(should have started earlier, that's a hefty monthly savings)
is done:
i = .04/12 = .003333..
n = 22*12 = 264
paym = ?
amount = 1,000,000
paym (1.003333...^264 - 1)/.003333... = 1,000,000
I got paym = 2368.48
(should have started earlier, that's a hefty monthly savings)
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