If you can earn 5%, how much will you have to save each year if you want to retire in 35 years with $1 million? =(1.05)^(35) this is what i thought formula was but cannot seem to finish it.
thanks in advance

Question

anonymous · Answer

How much are you starting with? 5% of 0 = 0.

anonymous · Answer

thats exactly what it says in the book, i need to find the amount that i would have to start with

anonymous · Answer

Got it.  Sorry, idiot moment.

anonymous · Answer

no worries my brain is fried also :)

anonymous · Answer

There is a formula for compounding interest, I just can't find it. Perhaps it's in your textbook or notes?

anonymous · Answer

i thought so but as yet i cannot find it

anonymous · Answer

11000.72 is what i came up with but cant remember how i got there :)

anonymous · Answer

A=75000(1+\{0.05}{1})^{1*15}
i think i am missing something somewhere

anonymous · Answer

oops wrong formula for this question

anonymous · Answer

I don't see time anywhere...

anonymous · Answer

told you brain fried

anonymous · Answer

thanks anyway will have to keep messing around with formulas until i find the correct one

anonymous · Answer

just made adjustment to question

anonymous · Answer

$A = P(1 + r)^t$
THis came from and about.com page - can't verify it's accuracy...

anonymous · Answer

=(1.05)^(35)

anonymous · Answer

I would say:
1 million = $x(1.05)^{35}$ but I can't be sure.

anonymous · Answer

$1,000,000.00	 35	5.516015368

anonymous · Answer

35 * 5.516015368 does not add up

anonymous · Answer

thats where i need help to finish this formula

anonymous · Answer

I'm looking at this page now... http://qrc.depaul.edu/studyguide2009/notes/savings%20accounts/compound%20interest.htm

anonymous · Answer

thx have just gone to link

anonymous · Answer

will give that a try when i find that calculator

anonymous · Answer

$1.05^{35} = 5.51601536759226$
$1,000,000 \div 5.51601536759226 = 181,290.285352577$
I don't know if this helps...