Andrew is planning his retirement which he anticipates will happen in 25 years . He plans to live another 20 years after that . He determines that he will need $ 3,000 per month at the beginning of each month to live on during retirement . During retirement he plans on keeping his money in an account that earns 9 % APR compounded quarterly . At the end of the year of retirement he plans on trekking to the arctic which he anticipates will cost $ 35,000 . He wants to have enough left over at his death to fund a student bursary that will pay $ 4,000 per year in perpetuity in an account that earns 7 % APR compounded monthly . Currently he can invest money into an account that earns 8 % EAR and he plans on making monthly payments . He currently has $ 9,000 in his account . How much must he put aside each month to afford his plans ?

Answer rating: 100% (QA)

To calculate the monthly payments required to achieve Andrews retirement goals we can break down the ... View the full answer