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Suppose you want to have $700,000 for retirement in 35 years. Your account earns 4% interest. How much would you need to deposit in the account each month?

 Apr 6, 2017
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Use this formula to calculate your monthly payment:

PMT=FV / {[[1 + R]^N - 1]^/ R}

PMT =700,000 / {[1 + 0.04/12]^(35*12) - 1 / [0.04/12]}

PMT =700,000 / {[1.003333]^420 - 1 / [0.003333]}

PMT =700,000 /                       913.730937.........

PMT =$766.09 - Monthly payment that you need to deposit.

 Apr 6, 2017

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