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You wish to retire in 30 years with retirement savings equal to $750,000. How much should...

You wish to retire in 30 years with retirement savings equal to $750,000. How much should you put away each month if the annual interest rate is 9.75%? Round to the nearest 0.01.

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Answer #1
Future Value of an Ordinary Annuity
= C*[(1+i)^n-1]/i
Where,
C= Cash Flow per period
i = interest rate per period =9.75%/12 =0.8125%
n=number of period =12*30 =360
750000= C[ (1+0.008125)^360 -1] /0.008125
750000= C[ (1.008125)^360 -1] /0.008125
750000= C[ (18.4153 -1] /0.008125]
C =$349.91
Correct Answer = $349.91
NOTE: ASK YOUR QUERIES.PLEASE DO UPVOTE
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