Question 1036407

You think you need 1.5 million and your retirement advisor thinks you will average 8% a year on your account. How much will you need to contribute a year to your account if you have 40 years to your retirement?
<pre>You need to use the formula to calculate the payment on the FUTURE VALUE of an ORDINARY ANNUITY, which is: {{{PMT = FV[oa]/(((1 + i/m)^(mt) - 1) * (m/i))}}}, where:
{{{PMT}}}  = Payment, per period (Unknown, in this case)
{{{FV[oa]}}} = Future Value of an ordinary annuity ($1,500,000, in this case)
{{{i}}}    = Annual Interest rate (8%, or .08, in this case)
{{{m}}}    = Compounding periods, per year (annual, or 1, in this case)
{{{t}}}    = Time, in years (40, in this case)

After substituting the various variables, you should get an annual payment (PMT) of {{{highlight_green(matrix(1,1, "$5,790.24")))))))}}}