Question

How do you do this problem using a Ti-84 calculator "apps", "finance", "TVM Solver."
---------------------------------------------------------------------------------------------
Part A.)
I am starting a retirement savings program. I expect to need $2,000,000 in 40 years I begin with a deposit of $650.00 and then deposit $450.00 per month at an interest rate of 0.500% per month I also have a trust fund that will add $20,000 to the fund at the end of the 7th year What will my monthly deposit need to be, beginning in year 8, if my return increases to 1.000% per month?
[THE ANSWER IS $295.00 WITHDRAW]

Part B.)
What return is required (%/month) beginning in year 8 if my monthly deposit remains at $450.00
[THE ANSWER IS 0.7%]

Answer 1

a	Time to retire	40	Years
	Time in months	480.00
	Monthly deposit	450.00
	Initial deposit	650.00
	Int rate	0.50%
	Amount needed at year 40	2,000,000.00
	FV till year 7	45,845.03	Using 84 periods and 650 as initial deposit and 450 as PMT
	Amount added in year 7 end	20,000.00
	Int rate	1.000%	Per month
	No of periods	396.00
	Monthly deposit	-274.96	So withdraw 275 per month, Using PMT function in Excel
b	If deposit remains at 450
	Rate of return required	0.70%	Using rate function in excel with 33 years remaining and present value as above in year 7