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It's January 1 and you start thinking about retirement. You decide that twice per month beginning two weeks from now for the next 35 years
It's January 1 and you start thinking about retirement. You decide that twice per month beginning two weeks from now for the next 35 years you will make a contribution into a retirement account. The retirement account pays an interest rate of 3% per year compounded quarterly. Once retired your retirement dreams are to be able to withdraw $5,000 per month for the next 30 years beginning immediately upon retirement. At the start of the eighth year after retirement you also want to give your beloved cat a gift of $30,000 so she can live out her nine lives comfortably as well . a. What value should be used in your calculations? (1 point) b. What is the amount of money you will need to afford your monthly withdrawal during retirement? (1.5 points) c. How much money in total will you need to have saved when you retire? (2 points) d. How much must you save each month to make this retirement dream possible? (1.5 points)
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