Use the savings plan formula to answer the following question.
At age 43, you start saving for retirement. If your investment plan pays an APR of 4% and you want to have $ 1million when you retire in 22 years, how much should you deposit monthly?
2 answers
Your turn to apply the Future Value formula
Don't know what your "savings plan formula" is, but this is how this question
is done:
i = .04/12 = .003333..
n = 22*12 = 264
paym = ?
amount = 1,000,000
paym (1.003333...^264 - 1)/.003333... = 1,000,000
I got paym = 2368.48
(should have started earlier, that's a hefty monthly savings)
is done:
i = .04/12 = .003333..
n = 22*12 = 264
paym = ?
amount = 1,000,000
paym (1.003333...^264 - 1)/.003333... = 1,000,000
I got paym = 2368.48
(should have started earlier, that's a hefty monthly savings)
1 answer