Answer
Miguel must set aside $62,745 annually
Explanation
N = Number of years till Miguel would retire = 43 years
FV = Future Value = $1,000,000
r = Interest rate = 10%
PMT = Annual payments (at the ending of the year) = ?? The question asks us to calculate this
We would use the future value ordinary annuity formula to calculate PMT
FV = PMT [tex][\frac{(1+r )^{N} -1}{r} ][/tex]
1000000 = PMT [tex][\frac{(1+0.10 )^{10} -1}{0.10} ][/tex]
PMT ≅ $62,745
Miguel must set aside $62,745 annually
