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You are planning for your retirement in 15 years. At that time you want to have...

You are planning for your retirement in 15 years. At that time you want to have saved $8,000,000. How much do you need to save each month for the next 15 years if the interest rate on your investment will be 9% per year (APR)?

Please use formula and show work so i can understand how to do it as well. Thank you!

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Answer #1

Interest per month is 0.09 ÷ 12 = 0.0075

Number of months in 15 years is 15 × 12 = 180.

The monthly amount to be invested is calculated below:

8,000,000 = Monthly amount x (1 +0.0075) 180 - 1 0.0075

8,000,000 = Monthly amount x 378.41

21, 141.33 = Monthly amount

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