document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1198973>Question 1198973</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose that you’d like to retire in 40 years and you want to have a future value of $ 800000 in a savings account. Also suppose that your employer makes regular monthly payments into your retirement account.<BR>\n" );
document.write( "If you can expect an APR of 6% for your account, how much do you need your employer to deposit each month?\r<BR>\n" );
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document.write( "Employer Contribution = \r<BR>\n" );
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document.write( "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 2% for your retirement account. How much do you need your employer to deposit each month under this assumption?\r<BR>\n" );
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document.write( "Employer Contribution =  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #833126 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=833126\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> at 6% compounded monthly, your employer will need to contribute 401.71 at the end of each month for 40 years (480 months).<BR>\n" );
document.write( "at 2% compounded monthly, your employer will need to contribute 1089.27 at the end of each month for 40 years (480 months).\r<BR>\n" );
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document.write( "online calculator that does this is found as <a  rel=nofollow HREF= \"https://arachnoid.com/finance/\" target = \"_blank\">https://arachnoid.com/finance/</a>\r<BR>\n" );
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document.write( "these are the results:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2022/121904.jpg\">\r<BR>\n" );
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document.write( "40 years * 12 months per year = 480 months.<BR>\n" );
document.write( "6% per year / 12 = .5%  per month<BR>\n" );
document.write( "2% per hear / 12 = .16666666666....% per month.<BR>\n" );
document.write( "pay is negative because it is what you are paying.<BR>\n" );
document.write( "future value is positive because it is what you are reciving. </SPAN>\n" );
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