Marshall has calculated that he will need 1500000 in his ret

Marshall has calculated that he will need $1,500,000 in his retirement fund in 30 years when he plans to retire. If Marshall can earn 7.5% annually over this period, how much does Marshall need to save annually to meet that goal? (show all work)

Solution

Future value of annuity=Annuity[(1+rate)^time period-1]/rate

1,500,000=Annuity[(1.075)^30-1]/0.075

1,500,000=Annuity*103.3994025

Annuity=1,500,000/103.3994025

which is equal to

=$14506.85(Approx).