Bonnie has decided to begin a retirement savings program where she will contribute to an account that
Question:
Bonnie has decided to begin a retirement savings program where she will contribute to an account that will accumulate tax free throughout her working life. She expects to retire in exactly 9 years from today, and her goal is to have accumulated the amount of $100000 when she reaches her future retirement age.
In order to meet her goal, she will begin making MONTHLY contributions to a special account devoted to the retirement goal. Contributions to this account will begin one month from today, and she will continue placing equal monthly amounts into her retirement account for the next 9 years. What minimum amount needs to be placed in her account at the end of each month so that she'll reach her goal if the annual interest rate is 9%.
$_____________________________
Instructions: Place your answer to the nearest dollar. Work all calculations using at least SIX decimal points of accuracy. DO NOT USE A DOLLAR SIGN OR A COMMA IN YOUR ANSWER.
Personal Finance Turning Money into Wealth
ISBN: 978-0134730363
8th edition
Authors: Arthur J. Keown