If I want to retire at age 55 with $1 million, how much should deposit in the bank annually? (same amount every year for 30 years, interest rate is 3.625%)

Question

This is an internal assessment for IB math :) Basically I want to determine how much money I need to deposit in the bank every year for 30 years if I want to have $1 million by the time the 30 years ends. The annual interest rate is 3.625%

Answer 1

Simplified for your case

A = m([1 + r)^t - 1)(r), where A = final amount, m = monthly deposit, r = rate, and t = time

1000000 = m([1.03625)³⁰ - 1)(0.03625)

 

Can you calculate?