You are 35 years old and you would like to start planning for retirement. You know that you will need $30,000 per year in retirement to pay your bills. If you plan to retire at age 75, how much money do you need to invest per month in order to reach your goal in time to retire? Imagine the annual interest rate is 9% and you would like to have enough to survive on until age 105.
a. What are the equations for this question? I am trying to master this principle to apply to a different problem, so I will need to be able to plug in my problem into the equations.
b. What is the answer?
c. Will this use compound interest? If not, how can I word the problem where the interest will compound?
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