Answer:
$832.22
Step-by-step explanation:
John wishes to withdraw $2000 every month when he retires at 55 till he's 70
So there are 70 - 55 = 15 years of withdrawing $2000 monthly.
Amount to be withdrawn in 15 years monthly = $2000*12*15= $360000
So he needs $360000to achieve this goal.
But he is currently 25 and has $10000.
55-25 = 30 years.
6% per annum
A = 10000(1+(0.06/30))^(30*30)
A= 10000(1+0.002)^(900)
A= 10000(1.002)^(900)
A= 10000(6.04)
A= 60400
His savings gave him $60400
But he needs $360000
He still needs
360000-60400= 299600
So how much will he deposit every month for 30 years to give 299600
30*12= 360
He will deposit 360 times.
Then 299600/360= $832.22
He will deposit$ 832.22 every month for 30 years.
