Mr. and Mrs. Chen have $200,000 in the bank now generating a guaranteed 4% per year. They will retire 10 years from now and they expect that they will need $40,000 per year during their retirement to live comfortably. As they want to budget for a 30-year retirement period, they realize they need to start saving more. Assume they will put $X per year into their saving account, starting immediately, and at the 10th year they will start withdrawing $40,000 per year. What should X be?

Answer rating: 100% (QA)

Anwer To determine the amount Mr and Mrs Chen need to save per year to meet their retirement goal we ... View the full answer