Question
When you retire in 30 years, you want to receive annual income of $36,000. You expect to live for 35 years in retirement. You expect
When you retire in 30 years, you want to receive annual income of $36,000. You expect to live for 35 years in retirement. You expect market interest rates to be 3% APR during your retirement. You plan to draw the balance of your savings to $0 after 35 years time. Knowing the amount you must have saved for retirement, you must now determine the amount that you need to save each month to meet this goal. You can earn 5.4% APR compounded monthly in an investment account over the next 30 years. If you begin making deposits at the end of this month, then how much must you deposit each month? Group of answer choices
$702.01
$10,866.15
$862.74
$24,141.21
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