ang Daiyu expects to retire in 30 years. She has decided that she would like to retire with enough money in savings to withdraw $4,500 per month for 24 years after she retires. Knowing she will be conservative with her retirement fund once retired, she believes that she will earn a rate of 3% per year from her retirement date onwards. Daiyu wonders how much she has to save per month in order to have that amount (calculated in (a)) at the time she retires. At the moment, she has about $9,000 in her savings account but she knows that will not be enough. She believes that she can earn an after-tax return of 5% compounded monthly on her savings. How much does Daiyu need to save each month for the next 30 years to reach her goal?
Yang Daiyu expects to retire in 30 years. She has decided that she would like to retire with enough money in savings to withdraw $4,500 per month for 24 years after she retires. Knowing she will be conservative with her retirement fund once retired, she believes that she will earn a rate of 3% per year from her retirement date onwards.
Daiyu wonders how much she has to save per month in order to have that amount (calculated in (a)) at the time she retires. At the moment, she has about $9,000 in her savings account but she knows that will not be enough. She believes that she can earn an after-tax return of 5% compounded monthly on her savings.
How much does Daiyu need to save each month for the next 30 years to reach her goal?
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