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

Algebra ->  Finance -> 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      Log On


   

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) About Me  (Show Source):
You can put this solution on YOUR website!

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

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