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you plan to buy a house in 30 years that cost 1 million dollars. you believe you can earn 7% annually how much must be saved at the end of each year?

pur-new-sol

We can calculate the annual savings by using the following formula in excel:-

=pmt(rate,nper,-pv,fv)

Here,

Pmt = Annual savings

Rate = 7%

Nper = 30 periods

PV = $1,000,000

FV = $0

Substituting the values in formula:

= pmt(7%,30,-1000000,0)

= $80,586.40

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