Question

You will need $228,790 in 28 years to supplement your retirement funds. if you can earn 8% interest, you must save $________ each year. hint: this is a yearly problem.

Answer 1

To answer this question use the formula of the future value of an annuity ordinary which is
Fv=pmt [( (1+r)^(n)-1)÷r]
Fv future value 228790
PMT yearly save. ?
R interest rate 0.08
N time 28 years
Solve the formula for PMT
PMT=Fv÷[( (1+r)^(n)-1)÷r]
PMT=228,790÷(((1+0.08)^(28)−1)÷(0.08))
PMT=2,399.75 round your answer to get 2400

Hope it helps!

Answer 2

You will need $228,790 in 28 years to supplement your retirement funds. If you can earn 8% interest, you must save $2,400 each year. ✅