Question
Harry is planning to save for retirement over the next 25 years. To do this, he plans to invest $500 per month, and his company
Harry is planning to save for retirement over the next 25 years. To do this, he plans to invest $500 per month, and his company will match this with a deposit of $450 per month. The first payment will be made today. He plans to earn an 11% APR (compounded monthly) each year while he save. Assume that Harry will make monthly withdraws beginning the month he retires; also, assume that he plans to earn 3% APR (compounded monthly) on his account balance in retirement, and will have a 20-year withdrawal period. Calculate the amount Harry can withdraw each month in retirement. (Enter a positive value, and round to 2 decimals)
Finnick has just been offered a job earning $75,000 a year. Finnick is paid once per year with his first check received one year from today. He anticipates his salary to grow by 2% per year until his retirement in 40 years. Assuming an interest rate of 10%, calculate the value of his final paycheck (40 years from today). (Enter a positive number and round to 2 decimals)
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