Steven wants to start an ira that will have $375,263 in it when he retires in 30 years. how much should he invest semiannually in his ira to do this if the interest is 5.5% compounded semiannually? assume an annuity due. round to the nearest cent.

Hi there
The formula of the future value of annuity due is
Fv=pmt [(1+r/k)^(kn)-1)÷(r/k)]×(1+r/k)
Fv future value 375263
PMT semiannual payment?
R interest rate 0.055
K compounded semiannual 2
N time 30 years
We need to solve the formula for PMT

PMT=Fv÷[(1+r/k)^(kn)-1)÷(r/k)]×(1+r/k)
PMT=375,263÷1+0.055÷2)^(2
×30)−1)÷(0.055÷2))×(1+0.055÷2))
=2,454.28answer

Good luck!

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