calculation of pension

[ChrisChin]

Andrew is working in a bank that offers a pension in the form of an annuity that pays 8% annual interest. he plan to retirement after 30 years and then has a income 3000 per month for 20 years. how much he has to deposit to his account per month to accomplish his plan?

 

[Ishuda]

Andrew is working in a bank that offers a pension in the form of an annuity that pays 8% annual interest. he plan to retirement after 30 years and then has a income 3000 per month for 20 years. how much he has to deposit to his account per month to accomplish his plan?

What are your thoughts? What have you done so far? Please show us your work even if you feel that it is wrong so we may try to help you. You might also read
http://www.freemathhelp.com/forum/threads/78006-Read-Before-Posting


As a hint, you will have to bring everything back to the present. That is, first use the proper formula to determine the future value (principle) needed to fund an annuity to pay the 3000 per month for 20 years at an interest of 8%. Given that future value amount needed, now compute the payment needed starting immediately (or in a month if that is the way your teacher expects it) if your money earns 8% in order to achieve that future value in 30 years.