You believe you will need to have saved $590,000 by the time you retire in 30 years in order to live comfortably. If the interest rate is 6% per year, how much must you save each year to meet your retirement goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

The amount of money you must save each year to meet your retirement goal is $7,462.86

Explanation:

Acording to the data, we have the following:

Future value = $590,000, N = 30 years and I = 6%

Therefore, to calculate the amount of money you must save each year to meet your retirement goal you have to use the formula of the future value.

Future value = yearly deposit * FVIFA (N, i)

$590,000 = deposit * FVIFA (30, 6%)

Deposit = $590,000 / 79.0582 = $7,462.86. Money to save each year.