Meg's pension plan is an annuity with a guaranteed return of 7% interest per year (compounded annually). She would like to retire with a pension of $30000 per annum for 15 years. If she works 31 years before retiring, how much money must she and her employer deposit per annum? (Round your answer to the nearest cent.)

Answer 1

Assumption: the rate stays at 7% throughout her 31 years of deposits and the 15 years of withdrawals.
(What happens after the 15 years of retirement and her money is used up ? )

let her payment + employers share be $x per year

x( 1.07^31 - 1)/.07 = 30000(1 - 1.07^-15)/.07

you do the button pushing,
I got x = 2676.88
which has to be split between her and her employer. (1338.44 for Meg)