Question

You want to have​ $5 million in your retirement account at the end of your​ 45-year working career. Your account will earn an average rate of return of​ 7% annually. You currently have​ $0 invested for retirement. How much will you need to invest each MONTH to reach your retirement​ goal? Use Beginning of Period PMTs.

Answer 1

$1,310.88

Step-by-step explanation:

In this question, we use the PMT formula which is shown in the spreadsheet.

The NPER represents the time period.

Given that,

Present value = $0

Future value or Face value = $5,000,000

NPER = 45 years × 12 months = 540

Rate = 7% ÷ 12 months = 0.5833%

The formula is shown below:

= PMT(Rate,NPER,PV,FV;type)

Th type would be 1

So, after solving this, the answer would be $1,310.88