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

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!