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A client has $300,000 in an account that earns 8% per year, compounded monthly. The client's...

A client has $300,000 in an account that earns 8% per year, compounded monthly. The client's 35th birthday was yesterday and she will retire when the account value is $1 million. At what age can she retire if she puts no more money in the account? At what age can she retire if she puts $250 per month into the account every month, beginning one month from today?

Solutions

Expert Solution

a)

He can retire age 50.10 years (181.20/12 + 35)

b)

He can retire age 49.08 years (169.01/12 + 35)

jeff jeffy answered 1 year ago
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