Question
Question 2: You plan to retire 30 years from today on a perpetual weekly income of $1500 per week(i.e. for the purposes of this example.
Question 2: You plan to retire 30 years from today on a perpetual weekly income of $1500 per week(i.e. for the purposes of this example. Assume that you live forever). Assuming that your savings earn a n APR of 5% during retirement and 7% before retirement (both with semi-annual compounding), how much money would you need to start saving at the end of each month until retirement to achieve your goal? (52 weeks in a year)
Assume that you also have $10000 dollars today to start your savings. Now what is the monthly amount you must save to attain your goals in the part above?
How much would you have to save per month in part b if you made your contributions at the beginning instead of the end of each month?
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