Question: Deterministic Selected Assumptions Sensitivity Analysis Conservative Assumption Group 2 Case Age 25 Retirement age 65 64 Retirement life expectancy 90 Current income $ 60,000 WRR

Deterministic Selected Assumptions Sensitivity Analysis Conservative Assumption
Group 2 Case
Age 25
Retirement age 65 64
Retirement life expectancy 90
Current income $ 60,000
WRR 75%
Inflation 3% 3.50%
Investment return 9% 8%
SS retirement benefit $ 14,000 $ 13,000 Solve

Solve the following question using the annuity model & purchasing power preservation model.

1) Calculate the amount Kevin must save monthly, at month end (an ordinary annuity) assuming he has no current savings to accumulate the capital needed for retirement at age 65.

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