SOLUTION: The formulas we have been using assume that the interest rate is constant over the period in question. Over a period of 40 years, though, interest rates can vary widely. To see wha

Question 1198886: The formulas we have been using assume that the interest rate is constant over the period in question. Over a period of 40 years, though, interest rates can vary widely. To see what difference the interest rate can make, let’s assume a constant APR of 4% for your retirement account. How much do you need your employer to deposit each month under this assumption?
Employer Contribution =
Found 2 solutions by math_tutor2020, ikleyn:
Answer by math_tutor2020(3817)   (Show Source): You can put this solution on YOUR website!

There appears to be missing information. Please double-check.

Answer by ikleyn(52781)   (Show Source): You can put this solution on YOUR website!
.

There is a lesson at this forum, free of charge, where similar problems are solved
and the solution method is described in all details. So, these solutions are your TEMPLATES.

This lesson is
    - Solved problems on Ordinary Annuity saving plans,
the problems are 4 an 5 of this lesson.

Substitute your numbers into the formulas and make necessary calculations using your calculator.

If you want to learn relevant theory, it is given in the lesson
    - Ordinary Annuity saving plans and geometric progressions

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