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You decide that you want to save 2,796,146 dollars for retirement. Assuming that you are 25...

You decide that you want to save 2,796,146 dollars for retirement. Assuming that you are 25 years old today, will retire at the age of 65, and can earn a 10 percent annual interest rate on your deposits, how much must you deposit each year to meet your retirement goal? (your first deposit will be one year from now and your last deposit will be 40 years from today, i.e. 40 deposits)

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Answer #1

Future value of annuity= payment per period * [(1+i)^n -1]/i  

i = interest rate per period

n = number of periods

=>

x * [(1+10%)^40 - 1]/10% = 2796146

=>

annual deposit x = 6317.65

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