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You believe you will need to have saved $480,000 by the time you retire in 40 years in order to live comfortably. if the interest rate is 6% per year, how much must you save each year to meet your retirement goal

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Aliwohaish12
Hi there
Use the formula of the future value of annuity ordinary
The formula is
Fv=pmt [(1+r)^(n)-1)÷r]
Fv future value 480000
PMT payment per year?
R interest rate 0.06
N time 40 years
First we need to solve for pmt
PMT=Fv÷[(1+r)^(n)-1)÷r]
PMT=480,000÷(((1+0.06)^(40)−1)
÷(0.06))=3,101.54....answer

Good luck!

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