Question
You are planning on retiring 20 years from today. You have saved $100,000 so far, and will contribute $500 per month at the end of
You are planning on retiring 20 years from today. You have saved $100,000 so far, and will contribute $500 per month at the end of each month to your retirement account until you retire. You expect to live for 30 years after retirement. If your investment account earns an annual rate of 9%, how much will you be able to receive in retirement income each month (with the first check arriving at the end of the month in which you retire) during your retirement? Assume monthly compounding for all calculations. a. $7,522.08 b. $2,148.11 c. $4,835.10 d. $2,596.83 e. $84,137.27
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