Suppose you wish to retire at the age of 60 with $70,000 in savings determine your monthly payment into an IRA if the APR is 5.5% compounded monthly and you begin making payments at 25 years old round your answer to the nearest cent if necessary

To solve this, we can use the **Future Value of an Annuity formula**, which is used for regular contributions into an account that grows at a compound interest rate.

The formula is:

\[
FV = P \times \frac{{(1 + r)^n - 1}}{r}
\]

Where:
- $FV$ is the future value (the amount you want at retirement, $70,000 in this case),
- $P$ is the monthly payment (the unknown value),
- $r$ is the monthly interest rate (annual rate divided by 12),
- $n$ is the total number of payments (years until retirement times 12).

### Step 1: Identify the known values.
- $FV = 70,000$,
- Annual interest rate = 5.5%, so the monthly interest rate is $r = \frac{5.5\%}{12} = \frac{0.055}{12} \approx 0.004583$,
- Time to retirement = 60 - 25 = 35 years, so $n = 35 \times 12 = 420$ months.

### Step 2: Solve for $P$.
Rearranging the formula to solve for $P$:

\[
P = \frac{FV \times r}{(1 + r)^n - 1}
\]

Let's plug in the values and compute $P$.It seems like I can’t do more advanced data analysis right now. Please try again later. If you would like, I can still help explain the process or provide an alternative approach to solve the problem. Let me know how you'd like to proceed!

Suppose you wish to retire at the age of 60 with $70,000 in savings. Determine your monthly payment into an IRA if the APR is 5.5% compounded monthly, and you begin making payments at 25 years old. Round your answer to the nearest cent if necessary.

Learn how to calculate the monthly payment required to retire with $70,000 in savings at age 60, with an APR of 5.5% compounded monthly. This solution uses the future value of an annuity formula, compound interest concepts, and financial mathematics. Suitable for high school seniors and college students.

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