SOLUTION: Hi Can someone please help me solve this? You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $5000 per month. You

Algebra ->  Distributive-associative-commutative-properties -> SOLUTION: Hi Can someone please help me solve this? You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $5000 per month. You      Log On


   

Question 1141119: Hi Can someone please help me solve this?
You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $5000 per month. You have access to an account that pays an APR of 6.0% compounded monthly. This requires a nest egg of $776,034.32.
What monthly deposits are required to achieve the desired monthly yield at retirement?
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
use the following calculator.

https://arachnoid.com/finance/

here's the results.

$$$

inputs are:

present value = 0
future value = 776,034.32
interest rate per month = 6% / 12 = .5%
payment made at the end of each month
number of months = 40 * 12 = 480

output is:

monthly payment is $389.68