Math Problem Statement
Jennifer is the owner of a video game and entertainment software retail store. She is currently planning to retire in 30 years and wishes to withdraw $15,000/month for 20 years from her retirement account starting at that time. How much must she contribute each month for 30 years into a retirement account earning interest at the rate of 2%/year compounded monthly to meet her retirement goal? (Round your answer to the nearest cent.)
Solution
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Math Problem Analysis
Mathematical Concepts
Compound Interest
Present Value of Annuity
Future Value
Formulas
Present Value of Annuity formula PV = PMT * ((1 - (1 + r)^-n) / r)
Future Value formula FV = PV * (1 + r)^n
Theorems
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Suitable Grade Level
Advanced High School
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