I seriously doubt that 7.5% is a monthly rate.Suppose you start saving for retirement at age 45.
How much do you have to save per month with a steady return
of 7.5% monthly (?) to accumulate $250,000 by 65?
. . I'll assume it is an annual rate.
This is an Annuity problem and has its own formula: .
. . . where: .
We have: .
Therefore, we should save about $451.48 per month.