Question
If Tom can earn 8% annual interest (compounded monthly), how much does he need to save each month to have $1 million when he retires
If Tom can earn 8% annual interest (compounded monthly), how much does he need to save each month to have $1 million when he retires in 40 years? Assume deposits occur at the end of each month. DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE NEAREST DOLLAR.
If Tom can earn 8% annual interest (compounded monthly), how much does he need to save each month to have $1 million when he retires in 30 years? (Note: compared to the previous question, Tom delays saving for 10 years.) Assume deposits occur at the end of each month. DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE NEAREST DOLLAR.
Finally, assume Tom retires with $1 million in his retirement account. If he moves his money to a safe account at a bank, paying 2% annual interest (compounded monthly), how much can he withdraw each month in retirement (assume he waits one month after retirement to make his first withdrawal and that he will live 20 years after retiring)? DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE NEAREST DOLLAR.
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