Asked by zeenat
If you can earn 5%, how much will you have to save each year if you want to retire in 35 years with $1 million?
Answers
Answered by
Reiny
Are you even looking at my previous replies to you?
The method I used in the previous question applies to this one.
Let me know what you think.
The method I used in the previous question applies to this one.
Let me know what you think.
Answered by
zeenat
but they are not the same thing is asking for. Some question are based on future value and some on present value. the formyla cannot be the same.
Answered by
Reiny
There are two main formulas
amount = presentvalue( 1+i)^n
or for an annuity:
amount = payment( (1+i)^n - 1)/i
for this one, let the payment be p
p( 1.05)^35 - 1)/.05 = 1000000
p = 1000000/90.320307..
p = $ 11071.70
about 11 thousand a year.
amount = presentvalue( 1+i)^n
or for an annuity:
amount = payment( (1+i)^n - 1)/i
for this one, let the payment be p
p( 1.05)^35 - 1)/.05 = 1000000
p = 1000000/90.320307..
p = $ 11071.70
about 11 thousand a year.
Answered by
zeenat
thank you. that helped in understanding. :)
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.