Question
You want to come up with a plan to save for retirement.You will contribute to your retirement account monthly for 40 years.One month after your
You want to come up with a plan to save for retirement.You will contribute to your retirement account monthly for 40 years.One month after your last contribution you will begin monthly withdrawals of $7,500 from that retirement account.You earn 6.6% APR while you're contributing to your retirement savings and 3.6% APR while you are withdrawing.You want to have enough money to finance 35 years in retirement.(Assume compounding frequencies match the payment frequencies.)
What kind of cash flow pattern is the savings contributions?
What variable would you solve for to find the monthly savings contribution?
What is the monthly savings contribution you must make to fully fund your retirement?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
