Question

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?

Answer 1

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.

Answer 2

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.

Answer 3

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.

Answer 4

thank you. that helped in understanding. :)