A young builder is planning for his superannuation. He begins making monthly payments into an account so that he can retire before he turns 50. For 25 years he earns a fixed 3.9% p.a. compounded monthly. At the age of 50, he retires and uses the savings to purchase a perpetuity with an interest rate of 5.52% p.a. compounded monthly, paying $3200 each month.

How much did the builder save each month to prepare for his early retirement?

Answer rating: 100% (QA)

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