if I have 198 months until I retire and expect a 7% annual return on my...

if I have 198 months until I retire and expect a 7% annual return on my investments, how much must I save each month to accomplish my retirement goal of $7,500 per month for 30 years (please show work so I can follow and understand)?

Solutions

Expert Solution

First we need ot find out the Present value of retirement goal at the time of retirement.

After that we need to find out how much to save monthly to achieve that amount at the time of retirement.

Formula:

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

My program is working until it gets to val2 / 1000000. I keep getting my answer...

My program is working until it gets to val2 / 1000000. I keep getting my answer to be 0. Can someone help please? int main() { int n, num, num1, num2, time, val1, val2, Ts; printf("**** Welcome to the Time Study Program ****\n"); printf("\n"); printf("Enter the number of elements for the give operation being perform\n"); printf("Number of elements: "); scanf_s("%d", &n); printf("\n"); printf("Enter the Performance Rating (PR) factor...

I expect to be retired for about 20 years (240 months). I expectto earn 6%...

I expect to be retired for about 20 years (240 months). I expect to earn 6% APR compounded monthly (after-tax) on my investments during my retirement years and I also expect inflation to average about 1.8% annually (compounded monthly). How much do I need to have saved to be able to spend the equivalent of $10,000 per month during each month of my retirement (note that you will be able to spend $10,000 during the first month of retirement and...

You have $26290 to invest for retirement. You expect to retire in 22 years. A particular...

You have $26290 to invest for retirement. You expect to retire in 22 years. A particular index fund has a long history of paying 8.53%, and inflation is estimated to be 3.1%. a) If you invest in that fund what would you expect your actual saving to be when you retire? $ ______ b) What will your real value be at the time you retire? $ ______

You have $23350 to invest for retirement. You expect to retire in 50 years. A particular...

You have $23350 to invest for retirement. You expect to retire in 50 years. A particular index fund has a long history of paying 8.35%, and inflation is estimated to be 3.1%. a) If you invest in that fund what would you expect your actual saving to be when you retire? $ b) What will your real value be at the time you retire?

I have a high definition antennae mounted on my house in my backyard. As I don’t...

I have a high definition antennae mounted on my house in my backyard. As I don’t exactly have a high ladder, it is mounted quite low, and we don’t receive many channels. The current height is 12 feet. My friend has offered to let me borrow a 15 foot high ladder. It is recommended to mount the lad- der at a 76 degree angle to the ground to prevent it from sliding out. I will be mounting the antennae 4...

This is the code I have. My problem is my output includes ", 0" at the...

This is the code I have. My problem is my output includes ", 0" at the end and I want to exclude that. // File: main.cpp /*---------- BEGIN - DO NOT EDIT CODE ----------*/ #include <iostream> #include <fstream> #include <sstream> #include <iomanip> using namespace std; using index_t = int; using num_count_t = int; using isConnected_t = bool; using sum_t = int; const int MAX_SIZE = 100; // Global variable to be used to count the recursive calls. int recursiveCount =...

You invest $5,000 in the stock market today and you expect a return of 7% annually....

You invest $5,000 in the stock market today and you expect a return of 7% annually. What do you expect this investment to be worth in 20 years? How many years will it take for this investment to double in value? Recalculate your answers with a return of 7% quarterly. Describe how the investment grows over time using terminology.

1. On the day you retire, you will have $389,900 in your retirement savings. You expect...

1. On the day you retire, you will have $389,900 in your retirement savings. You expect to earn 4.5 percent, compounded monthly, and live 24 more years. How much can you withdraw from your savings each month during your retirement? A. $754.16 B. $751.35 C. $2,208.01 D. $2,072.00 E. $2,216.28 2. You are retired, have $264,500 in your savings, withdraw $2,000 each month, and earn 4.5 percent, compounded monthly. How long will it be until you run out of money?...

You have 34 years left until retirement and want to retire with $4.6 million. Your salary...

You have 34 years left until retirement and want to retire with $4.6 million. Your salary is paid annually, and you will receive $72,000 at the end of the current year. Your salary will increase at 4.5 percent per year, and you can earn a 12.5 percent return on the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year?

Suppose you have 25 years until you retire, and that you desire a retirement nest-egg of...

Suppose you have 25 years until you retire, and that you desire a retirement nest-egg of $2,500,000 on the day you retire. Suppose also that you’ve saved $100,000 toward your retirement so far, and that your investment account earns a nominal rate of 7.5% per year, compounded monthly. In addition, suppose you expect a windfall inheritance of $200,000 five years from now that you will invest in this account. a) What is the effective interest rate, or annual percentage yield,...

Subjects