ou want to come up with a plan to save for retirement. You will contribute to your retirement account monthly for 25 years. One month after your last contribution you will begin monthly withdrawals of $4,500 from that retirement account. You earn 7.2% APR while you’re contributing to your retirement savings and 2.4% APR while you are withdrawing. You want to have enough money to finance 40 years in retirement. (Assume compounding frequencies match the payment frequencies) What is the monthly savings contribution you must make to fully fund your retirement?
ou want to come up with a plan to save for retirement. You will contribute to your retirement account monthly for 25 years. One month after your last contribution you will begin monthly withdrawals of $4,500 from that retirement account. You earn 7.2% APR while you’re contributing to your retirement savings and 2.4% APR while you are withdrawing. You want to have enough money to finance 40 years in retirement. (Assume compounding frequencies match the payment frequencies) What is the monthly savings contribution you must make to fully fund your retirement?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 44P
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You want to come up with a plan to save for retirement. You will contribute to your retirement account monthly for 25 years. One month after your last contribution you will begin monthly withdrawals of $4,500 from that retirement account. You earn 7.2% APR while you’re contributing to your retirement savings and 2.4% APR while you are withdrawing. You want to have enough money to finance 40 years in retirement. (Assume compounding frequencies match the payment frequencies) What is the monthly savings contribution you must make to fully fund your retirement?
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