Posted by **Kristie Howard** on Sunday, July 1, 2012 at 11:52pm.

How much must be set aside each month at 12% annual growth compounded monthly for 30 years in order to be able to retire on $4,500 per month for 15 years at 3% annual growth compounded monthly?

- math -
**Reiny**, Monday, July 2, 2012 at 8:40am
x(1.01^360 - 1)/.01 = 4500(1- 1.0025^-180)/.0025

x(3494.964133) = 651624.6215

x = 186.4467..

x = $186.45

check:

amount of 186.45 deposited monthly for 360 months at .01

= 186.45(1.01^360 - 1).01

= 651636.06

if I use 186.4476.. I get 651624.6214 , the fact that your deposit gets rounded off to the nearest penny explains the $11.40 discrepancy.

## Answer This Question

## Related Questions

- annuaties - Mr. Strupp expects to retire in 12 years. Beginning one month after ...
- Finite Math and Applied Calculus - Betty Sue sets up a retirement account. For ...
- math - Meg's pension plan is an annuity with a guaranteed return of 7% interest ...
- bus math - Meg's pension plan is an annuity with a guaranteed return of 7% ...
- business math - Meg's pension plan is an annuity with a guaranteed return of 7% ...
- Finance - Meg's pension plan is an annuity with a guaranteed return of 7% ...
- Math - John is a 45 year old and wants to retire at age 65. He wishes to make ...
- Finance - Loans problem please help - A company borrows $170000, which will be ...
- ctu - Diane works at a public university. She contributes $625 at the end of ...
- Corporate Finance - A 15-year annuity pays $1,750 per month, and payments are ...

More Related Questions