With 35 years until retirement and $15,000 in the bank, it is time to think about savings. How much would have to be put aside at the beginning of each month to reach $2.5 million if an interest rate of 10% can be expected.
| Variable | Enter |
|---|
| Clear | |
| Pmt Timing | End |
| Present Val | -15,000 |
| Future Val | 2,500,000 |
| Intrst/Yr% | 10 |
| Periods | 420 |
| Periods/Yr | 12 |
| Cmpnds/Yr | 12 |
Compute Payment by scrolling to its variable and choosing Calculate from the menu.
The payment amount is –525.15 per month. It is negative because it is a cash outflow.
