You want to have $$500,000$ in savings when you retire in $45$ years. Your monthly$$ salary is expected to grow by $0\mathrm{.}5\%$ every month between now and your retirement date and you always save a constant fraction of your salary. The interest rate is$9\%($EAR$).$

$1.$ How much do you have to save in the first month, i$.$e$.,$ one month from now?

Answer rating: 100% (QA)

To calculate how much you need to save in the first month we can break down the problem into steps Step 1 Calculate the future value of your savings goal Step 2 Calculate the future value of your mont... View the full answer