SOLUTION: Suppose that you’d like to retire in 40 years and you want to have a future value of $ 500000 in a savings account. Also suppose that your employer makes regular monthly payments

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Question 1198885: Suppose that you’d like to retire in 40 years and you want to have a future value of $ 500000 in a savings account. Also suppose that your employer makes regular monthly payments into your retirement account.
If you can expect an APR of 7% for your account, how much do you need your employer to deposit each month?
Employer Contribution =
Answer by ikleyn(52781) About Me  (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