Question
12)Hector just started his job at Toyota and is offered the benefit of saving $75 each week from his paycheck in a retirement plan that
12)Hector just started his job at Toyota and is offered the benefit of saving $75 each week from his paycheck in a retirement plan that will earn 4% interest. Hector begins saving in one week and expects to contribute to this plan for 40 consecutive years. At retirement (in 40 years) Hector would like to begin to draw an equal monthly amount from his accumulated savings, and Hector expects to live for 25 years after he retires. Assuming a constant interest rate of 4% in retirement, which of the following amounts comes closest to that equal monthly amount that Hector can spend once in retirement?
a. $ 1,430
b. $ 6,070
c. $ 2,032
d. $ 2,910
e. $ 4,191
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