Question
14. You want to save at least $400,000 to supplement your pension income to retire early at age 60. You have 26 years to accomplish
14. You want to save at least $400,000 to supplement your pension income to retire early at age 60. You have 26 years to accomplish this goal. You anticipate a return on your investment of 8%. How much should you set aside each month to reach this goal? ($402.36) 19. You want to retire in 25 years and would like to receive $3,000 per month for 15 years starting at the end of the first month after you retire. Calculate the amount you must invest now if you are able to earn a return on your investments of 9%. ($35,018.65) 2. How much interest is paid on a one year loan for $5,000? The interest rate is 15% compounded monthly and the payments are made at the end of each month. ($415.50) 1. Casey plans to retire in 25 years. He would like to receive $2,500 every month for 20 years beginning the month he retires. How much should he invest now if he assumes he can earn an annual return of 10%? (Solution: $24,634.88)
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