st taken out a mortgage on a $250,000 home that requires monthly payments over the next 25 years. In addition, you want to retire at the end of 25 years. You start contributing $450 at the end of each month into a dedicated retirement account and your employer contributes matching funds into that same account. The final payment into the account will be made on the day you begin retirement. The APR on the mortgage is 4.3 percent and funds deposited into the retirement account also earn an annual 4.3 percent return. If you want to retire with $1 million in retirement savings, how much additional funds will be needed to achieve this retirement objective? (Ignore closing costs, taxes and inflation.) a. $516,670.25 b. $537,283.41 c. $718,390.00 d. $758,335.72 e. $859,195.00
You have just taken out a mortgage on a $250,000 home that requires monthly payments over the next 25 years. In addition, you want to retire at the end of 25 years. You start contributing $450 at the end of each month into a dedicated retirement account and your employer contributes matching funds into that same account. The final payment into the account will be made on the day you begin retirement. The APR on the mortgage is 4.3 percent and funds deposited into the retirement account also earn an annual 4.3 percent return. If you want to retire with $1 million in retirement savings, how much additional funds will be needed to achieve this retirement objective? (Ignore closing costs, taxes and inflation.) a. $516,670.25 b. $537,283.41 c. $718,390.00 d. $758,335.72 e. $859,195.00
Step by step
Solved in 3 steps with 3 images
