How do I answer this? The formula is too confusing. I am trying to find step by step instructions on how to solve. Thank you!
You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $5000 per month. You have access to an account that pays an APR of 6.0% compounded monthly. This requires a nest egg of $776,034.32.
What monthly deposits are required to achieve the desired monthly yield at retirement?