Suppose that you$$d like to retire in $40$ years and you want to have a future value of $ $600000$ in a savings account. Also suppose that your employer makes regular monthly payments into your retirement account.

If you can expect an APR of $8\%$ for your account, how much do you need your employer to deposit each month?

Employer Contribution $=$

The formulas we have been using assume that the interest rate is constant over the period in question. Over a period of $40$ years, though, interest rates can vary widely. To see what difference the interest rate can make, let$$s assume a constant APR of $2\%$ for your retirement account. How much do you need your employer to deposit each month under this assumption?

Employer Contribution $=$