Client has $1 million 16 years to retire wants $5 million at end expects to earn 8% year how much to save each year When I do: pv= - 1 million i get $51,000 a year needs to save but when i take out the - 1 million it says 274,000 which one is right?
This is an annuity question… PV = -1 mio FV = 5 mio I/Y =8% N= 16 51K looks right. 51907=PMT(8%,16,-1000000,5000000,0) in excel.
Pv 1,000,000 n 16 FV 5,000,000 IY 8 Compute Pmt = $277,861 / year for 16 years. the $274,000 my be in begin mode.
I too got 51907. The PV should be negative 1 m.