Hi; I am honestly unsure as to which forum this belongs in so I'll put it here and if it needs to be moved it can be moved. Anyways, this is for a finance class
After saving diligently your entire career, you and your spouse are ready to retire with a nest egg of $600,000. You need to invest this money in a mix of stocks and bonds that will allow you to earn $5,000 per month for 30 years. What annual interest rate (APR) do you need to earn?
9.4% = i
600,000 = 5,000 * [ ( 1 - (1 / (1+i)^360) ) / i ]
I am getting stuck on how you break down the equation in steps to solve for i. Can somebody please show me how it is done?
NOTE: I am not asking you to plug .094 in for i; I am simply asking how you SOLVE for it. Thank you for any help!