I need help with my finance homework

Business & Finance
Tutor: None Selected Time limit: 1 Day

Ross has decided that he wants to build enough retirement wealth that, if invested at 7 percent per year, will provide him with $4,800 of monthly income for 30 years. To date, he has saved nothing, but he still has 20 years until he retires.

How much money does he need to contribute per month to reach his goal? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Contribute per month $

Oct 19th, 2015

Thank you for the opportunity to help you with your question!

FV = 30 * 4800 = 144000

FV = P(1+R)^n -1)/r

P= FV(r)/ (1+r)^n-1

P= 144000*0.07/ 1.07^20 -1

P=3512.58

Please let me know if you need any clarification. I'm always happy to answer your questions.
Oct 19th, 2015

I got the same answer 3512.58 and it was incorrect so I don't understand where I am messing up

Oct 19th, 2015

FV = 30 * 4800 = 144000

FV = P(1+R)^n -1)/r

P= FV(r)/ (1+r)^n-1

P= 144000*0.07/12/ 1.+0.07/12^240 -1

P= 276.43


Oct 19th, 2015

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