amount = payment[(1+i)^n - 1]/i
200000 = paym[1.09)^25 - 1]/.09
200000 = paym[84.700896]
paym = 200000/84.700896
= 2361.25
John wants a $200,000 house. He is 40 and he retires at 65. He believes he earns 9% annually after taxes. How much must John invest at the end of each of the next 25 years to have the cash purchase price of the house when he retires?
1 answer