Explanation Given: An APR of 5.4% after 50 years (contributions made at the end of each year, including the last year) and the given retirement savings account have $400,000. Formula used: Retirement savings formula (monthly): V = M × [ [ 1 + ( r / 12 ) ] T × 12 − 1 ( r / 12 ) ] Where, M is the monthly contribution to the retirement savings account (made at the end of each month), r is the APR expressed in decimal form, and T is the total number of monthly contributions. Calculation: To calculate M substitute the values as 400,000 for V , 0

Excursions in Modern Mathematics (9th Edition)

9th Edition

ISBN: 9780134468372

Author: Peter Tannenbaum

Publisher: PEARSON

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Chapter 10, Problem 54E

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The value of monthly contribution.

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Chapter 10, Problem 53E

Chapter 10, Problem 55E

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Excursions in Modern Mathematics (9th Edition)

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The value of monthly contribution.

Solution Summary: The author calculates the value of monthly contribution with an APR of 5.4% after 50 years when retirement savings account have 400,000.

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The value of monthly contribution.

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