Question
Robin is planning for her retirement. She is currently 37 years old and plans to retire at age 67 and live until age 97. Robin
Robin is planning for her retirement. She is currently 37 years old and plans to retire at age 67 and live until age 97. Robin currently earns $100,000 per year and anticipates needing 80% of her income during retirement. She anticipates Social Security will provide her with $20,000 per year at age 67. She believes she can earn 10% on her investments and inflation will be 3% per year. Robin would like to have the same amount in retirement savings at age 97, as she does at age 67, when she retires. How much must Robin save at the end of each year, if she wants to make her last savings payment at age 67 to meet her retirement goal?
$9,379.57.
$10,899.37.
$11,181.92.
$12,663.84.
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