Question
A couple wishes to retire in Orlando, Florida at Disney World. The couple will withdraw $10,000 each month in retirement (assume beginning of the month
A couple wishes to retire in Orlando, Florida at Disney World. The couple will withdraw $10,000 each month in retirement (assume beginning of the month withdrawals). Their money will earn 3.0% APR with monthly compounding in retirement, and they expect retirement to last 30 years. The couple would also like to leave $750,000 to their children at the end of the 30th year in retirement.
The couple plans on retiring in 25 years. Currently, they have $200,000 in savings and invest in a mutual fund each quarter that pays a 9% APR (quarterly compounding) on average. What quarterly investment will allow them to reach their goal? (assume end of quarter contributions)
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