Suppose that you are 25 years old and you plan to begin contributing to a retirement fund earning interest at a rate of 4.5% per year compounded monthly. Your plan is to retire at the age of 65, and you would like to be able to withdraw $8,000 per month from your retirement for 25 years after retirement. How much must you contribute each month for the next 40 years to meet your retirement goal? Solve using the appropriate formula(s): write the formula(s) that is/are needed, fill in the formula(s) with the corresponding numbers, and solve. Round the final answer to two decimal places and include units.

Suppose that you are 25 years old and you plan to begin contributing to a retirement fund earning interest at a rate of 4.5% per year compounded monthly. Your plan is to retire at the age of 65, and you would like to be able to withdraw $8,000 per month from your retirement for 25 years after retirement. How much must you contribute each month for the next 40 years to meet your retirement goal? Solve using the appropriate formula(s): write the formula(s) that is/are needed, fill in the formula(s) with the corresponding numbers, and solve. Round the final answer to two decimal places and include units.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 23P

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