Question: Connor would like to start retirement savings program where he will contribute to an account that will accumulate tax free throughout his career. He expects

Connor would like to start retirement savings program where he will contribute to an account that will accumulate tax free throughout his career. He expects to retire in exactly 25 years from today with the goal of having accumulated the amount of $1250000 in his retirement fund when he reaches his future retirement age. In order to meet his goal, he 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 will continue placing equal monthly amounts into his retirement account for the next 25 years. What minimum amount needs to be placed in his account at the end of each month so that he'll reach his goal if the annual interest rate is 4.50%. 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. Life tip: think about this answer as you enter the work force and start saving for retirement. Start young
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
