Hello, Linda!

This is an Annuity . . .Tammy has joined a 401K plan with her company.

Her goal is a total value of $2,000,000 when she retires in 45 years.

With an expectant growth rate of 10% and being paid bi-weekly (26 times a year),

what amount should she have deducted from her paycheck in order to meet her goal?

. . I will assume that the interest is computed bi-weekly.

The formula is: .

. . where: .

We have: .

Hence: .

Therefore, Tammy should authorize an $87.17 bi-weekly deduction.

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Actually, she should authorize an $87.18deduction.

Rounding down, she will be about $32 short of her two million dollars.

. . (But being a bi-millionaire at the time, she probably won't care.)