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You believe you will spend $42,000 a year for 18 years once you retire in 36 years. If the interest rate is 5% per year, how
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Answer #1

Rate =5%
Number of years after retirement =18
PMT =42000
The Value of Retirement fund =PMT*((1-(1+r)^-n)/r =42000*((1-(1+5%)^-18)/5% =490962.6499

Number of years before retirement.=36
The amount saved each year =FV/((1+r)^n-1)/r =490962.6499/((1+5%)^36-1)/5%) =5122.93

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