Question 1137944
You want to be able to withdraw $20,000 from your account each year for 20 years after you retire.

You expect to retire in 15 years.

If your account earns 8% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?
<pre>It is TRUE that $196,362.95 is needed at the beginning of retirement in order to withdraw $20,000 annually for 20 years. 
However, to calculate a FV of $196,362.95, the following PMT (payment) formula should be used: {{{highlight_green(highlight_green(PMT = FV[oa]/(((1+i/m)^(mt)-1)/(i/m))))}}} OR {{{highlight_green(highlight_green(PMT = FV[oa]/(((1+i/m)^(mt)-1) * (m/i))))}}}
where: 
{{{PMT}}} = Payment made at the END of each time period
{{{FV[oa]}}} = Future/Accumulated Value of an Ordinary Annuity (196,362.95, in this case)
{{{i}}} = Annual Interest rate (8%, or .08, in this case)
{{{m}}} = Number of ANNUAL compounding periods (annually, or 1, in this case)
{{{t}}} = Time, in years (15, in this case)
Substitute all variables into the above formula and you get: {{{highlight_green(matrix(1,4, Annual, "payments/deposits", of, "$7,231.96"))}}}
<b>You're very welcome, @IKLEYN....My pleasure.</b>