Question 1118056

Belle, who has just started her first full-time salary job is determined to have $1 million in her account by the time she retires.  She is now 25 and hopes to retire at 65 years of age.  Her investments have been earning 5.25% annual return and she thinks it’s realistic that can be maintained.  How much would Belle have to put aside each month, in order to reach her goal?

I have been trying endlessly to get this answer but I always get it wrong on my submission. My answer I arrived at is 	
7786.37. From doing this

PMT = 1,000,000 / ((1 + 0.0525)^40 -1 )/ 0.0525 Since the annual rate is 5.25%, I arrived at the answer 7786.37, but the website I am submiting to counts it as wrong.<pre>Monthly payment: {{{highlight_green("$613.70")}}}
Solver gave you the correct formula. 
Just to show you how off you are: Depositing $7,786.37 per month would yield $12,687,513.78 in 40 years.