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Phil has an after tax return on his investments of 2.8% compounded monthly. How much will...

Phil has an after tax return on his investments of 2.8% compounded monthly. How much will Phil have to save per month in order to have $80,000 in 25 years?

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Answer #1

Future Value =

where r is the rate of Return for compounding period = 2.8% /12 = 0.233333333333% _ _ _ (Semi Annual)

n is the no of compounding period 25 years * 12 = 300 months

80000 =

80000 =

80000 = Periodic Payment * 433.762013659

Periodic Paymant = 80,000 / 433.762013659

Periodic Paymant = $ 184.43

Phil have to save 184.43 every month.

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