Question
Mrs.A is 25 years old. She plans to retire at age 62. In her retirement, she plans to live off her pension income, at $59,883
Mrs.A is 25 years old. She plans to retire at age 62. In her retirement, she plans to live off her pension income, at $59,883 a year. Assuming that her pension account can generate a 6% annual interest for her lifetime, and she plans to live to 90. She will withdraw the pension income at the beginning of each year. If she and her employer together make a contribution to her pension account at the end of each month between now (age 25) and the day she retires (age 62), what should be the minimum amount of this combined contribution? (Note that over-rounding may give you a significant rounding error. So round to at least 6 decimal places throughout your calculation to avoid getting the wrong answer.)
Answer: $_______ (Round to two decimal places)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started