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?
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.
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.
Answered by zeenat
thank you. that helped in understanding. :)
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