When Alice Dill and Donald Nash married, they set a goal to have $1,000,000 on their 50th wedding anniversary. If they could earn 6.6% interest compound monthly in an ordinary annuity, how much would they have to save monthly to reach their goal?
Alice and Donald would have to save=$212.61 per month.
The formula you use for this is: PMT=FV{[[1 + R]^N - 1]^-1. R}=PMT NEEDED TO SAVE $1 IN THE FUTURE, Where R=Interest rate per period, N=number of periods, P=periodic payment, FV=Future value.
