Trevor plans to retire at age 62, and estimates that $55,200 a year in retirement for 33 years will be needed. That annual amount will be paid out in monthly income checks. To save for retirement, Trevor plans to put money every month into a 401k plan at work. If Trevor is currently 23, how much will need to be saved each month to meet the retirement goal, assuming the retirement accounts earn an average of 6.2% per year.
Trevor plans to retire at age 62, and estimates that $55,200 a year in retirement for 33 years will be needed. That annual amount will be paid out in monthly income checks. To save for retirement, Trevor plans to put money every month into a 401k plan at work. If Trevor is currently 23, how much will need to be saved each month to meet the retirement goal, assuming the retirement accounts earn an average of 6.2% per year.
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
Problem 1PS
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Trevor plans to retire at age 62, and estimates that $55,200 a year in retirement for 33 years will be needed. That annual amount will be paid out in monthly income checks. To save for retirement, Trevor plans to put money every month into a 401k plan at work. If Trevor is currently 23, how much will need to be saved each month to meet the retirement goal, assuming the retirement accounts earn an average of 6.2% per year.
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