You are making plans for your retirement. You have just turned $30$ and want to retire on your

${65}^{th}$ birthday. Once retired, you plan to move to a tax$-$free Caribbean state, where you believe

you can live comfortably on $$10,000$ per month. Your first payment of $$10,000$ will occur one

month after you retire, and you will receive your last instalment from your retirement fund on

your ${85}^{th}$ birthday when you intend to move back to Canada and depend on your kids for

support.

Your current salary is $$60,000$ per year, or $$5,000$ per month. Your personal tax rate is

approximately $25\%.$ You estimate that you can earn an average return of $10\%$ APR

compounded monthly on any money you invest over the next $60$ years. You will make your first

deposit one month from now and your last deposit on your ${65}^{th}$ birthday. To ensure that you

are able to achieve your retirement objective, what percentage of your after$-$tax monthly.

income must you save?

Select one:

a$.4\mathrm{.}52\%$ of after tax monthly income

b$.5\mathrm{.}46\%$ of after tax monthly income

c$.6\mathrm{.}21\%$ of after tax monthly income

d$.7\mathrm{.}28\%$ of after tax monthly income

e$.8\mathrm{.}52\%$ of after tax monthly income