Please help with this problem (also attached):
Retirement Savings. You believe you will need to have saved $500,000 by the time you retire in 40 years in order to live comfortably. If the interest rate is 6 percent per year, how much must you save each year to meet your retirement goal?© BrainMass Inc. brainmass.com March 4, 2021, 6:22 pm ad1c9bdddf
This is an annuity problem. The amount you save each year is an annuity and that should grow to $500,000 in 40 years at 6%. In order to find the future value ...
The solution explains how to calculate the annual savings needed for a given amount at retirement.