Question: please explain with steps. no excel formulas. thanks You want to save for retirement so that you can pay yourself a monthly real cash flow
please explain with steps. no excel formulas. thanks
You want to save for retirement so that you can pay yourself a monthly real cash flow of $9,000 per month in retirement, starting exactly 50 years and 1 month from today. You want your retirement savings to last for exactly 35 years. You currently have no savings for retirement, but just received a $5,000 bonus at work that you will contribute right now. In addition, you'll save each month, starting next month, until you retire 50 years from now. Your retirement account will earn a nominal 8% APR, compounded quarterly. Inflation is 2% APR, compounded quarterly. a. If you save the same nominal amount each month for the next 50 years, how much would each monthly contribution to your retirement account be? You would save a nominal $ per month. (Round to the nearest dollar) b. If you save the same real amount each month for the next 50 years, what would be the nominal amount of the first monthly contribution next month? Your first contribution (next month) would be a nominal $ (Round to the nearest dollar) You want to save for retirement so that you can pay yourself a monthly real cash flow of $9,000 per month in retirement, starting exactly 50 years and 1 month from today. You want your retirement savings to last for exactly 35 years. You currently have no savings for retirement, but just received a $5,000 bonus at work that you will contribute right now. In addition, you'll save each month, starting next month, until you retire 50 years from now. Your retirement account will earn a nominal 8% APR, compounded quarterly. Inflation is 2% APR, compounded quarterly. a. If you save the same nominal amount each month for the next 50 years, how much would each monthly contribution to your retirement account be? You would save a nominal $ per month. (Round to the nearest dollar) b. If you save the same real amount each month for the next 50 years, what would be the nominal amount of the first monthly contribution next month? Your first contribution (next month) would be a nominal $ (Round to the nearest dollar)
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