1. An employee plans on working and contributing to his retirement account monthly for 30years and then plans to live off his retirement savings for the next 27 years. He expects hisretirement account to eam an APR of 7.5% compounded monthly. If he wants to make $3000monthly withdrawals from his account during retirement, how much should he contribute tohis retirement account monthly during his working years?2. An employee plans on working and contributing to his retirement account monthly for 32years and then plans to live off his retirement savings for the next 35 years. He expects hisretirement account to eam an APR of 6.3% compounded monthly. He can afford to makeS500 monthly contributions to his retirement account. How much money can he withdrawfrom the account monthly during the 35 years of his retirement?Hints and Assumptions:i. At the end of the retirement period the account will be emptyii. The PV at the time when retirement begins is the FV goal while working, so you'll need to do theproblem in 2 steps.

According to the rule, because you have posted multiple questions, we will answer the first question…

1. An employee plans on working and contributing to his retirement account monthly for 30 years and then plans to live off his retirement savings for the next 27 years. He expects his retirement account to eam an APR of 7.5% compounded monthly. If he wants to make $3000 monthly withdrawals from his account during retirement, how much should he contribute to his retirement account monthly during his working years?

1. An employee plans on working and contributing to his retirement account monthly for 30 years and then plans to live off his retirement savings for the next 27 years. He expects his retirement account to eam an APR of 7.5% compounded monthly. If he wants to make $3000 monthly withdrawals from his account during retirement, how much should he contribute to his retirement account monthly during his working years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 32P

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answer the 2nd question, please.
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please show all work and state answer clearly
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Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this year's salary. Likewise, you expect to deposit 8% of your salary each year until you reach age 65. Assume that the rate of interest is 7%. The future value at retirement (age 65) of your savings is:
Please answer fast