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Today is your 25th birthday, and you have calculated that you need to accumulate $1.2 Million by your 70th birthday in order
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Answer #1

FV = $1,200,000
Rate = 8%
Nper = 70 - 25 = 45
PV = 0

Required deposit each year can be calculated by using the following excel formula:
=PMT(rate,nper,pv,fv)
=PMT(8%,45,0,-1200000)
= $3,105.

Required deposit each year = $3,105.

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