Question

At age

43​,

you start saving for retirement. If your investment plan pays an APR of

5​%

and you want to have

​$0.9

million when you retire in

22

​years, how much should you deposit​ monthly?

You should invest

​$___

each month.

Answer 1

  

_______________________________

_______________________________

Future Value Annuity =

r = 0.05 / 12 = 0.00416666666

n = 22 years * 12 = 264 months

900,000 =

900,000 = Periodic Payment * 479.35401069

Periodic Payment = 900,000 / 479.35401069

Periodic Payment = 1877.53

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