Monthly payments for a retirement account


Problem: Lisa wants to retire on $56,000 per year forever. She estimates that her retirement account will earn 8.4% compounded annually. Lisa will make monthly payments into her account for the next 25 years which her company will match dollar for dollar. How much should the monthly payments be?

(Hint) What balance is needed to earn $56,000 annually from the interest? Assume that the interest rate you need is as given in the problem.

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Finance Basics: Monthly payments for a retirement account
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