Suppose you are 25 years old and would like to retire at age 60. Furthermore, you would like to have a retirement from which you can draw an income of $125,000 per year-forever! How much would you need to deposit each month to do this? Assume a constant APR of 8% and that the compounding and payment periods are the same. To draw $125,000 per year, there must be $ 1,562,500 in your savings account when you retire. (Do not round until the final answer. Then round to the nearest integer as needed.) You can reach your goal by making monthly deposits of $ (Do not round until the final answer. Then round to two decimal places as needed.)
Suppose you are 25 years old and would like to retire at age 60. Furthermore, you would like to have a retirement from which you can draw an income of $125,000 per year-forever! How much would you need to deposit each month to do this? Assume a constant APR of 8% and that the compounding and payment periods are the same. To draw $125,000 per year, there must be $ 1,562,500 in your savings account when you retire. (Do not round until the final answer. Then round to the nearest integer as needed.) You can reach your goal by making monthly deposits of $ (Do not round until the final answer. Then round to two decimal places as needed.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Suppose you are 25 years old and would like to retire at age 60. Furthermore, you would like to have a retirement fund
from which you can draw an income of $125,000 per year-forever! How much would you need to deposit each month
to do this? Assume a constant APR of 8% and that the compounding and payment periods are the same
To draw $125,000 per year, there must be $ 1,562,500 in your savings account when you retire
(Do not round until the final answer. Then round to the nearest integer as needed.)
You can reach your goal by making monthly deposits of $
(Do not round until the final answer. Then round to two decimal places as needed.)
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