Suppose that you are 34 years old now, and that you would like to retire at...

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Suppose that you are 34 years old now, and that you would like to retire at the age of 75. Furthermore, you would like to have a retirement fund from which you can draw an income of $70,000 annually. You plan to reach this goal by making monthly deposits into an investment plan until you retire. How much do you need to deposit each month? Assume an APR of 8% compounded monthly, both as you pay into the retirement fund and when you collect from it later. Suppose that you are 34 years old now, and that you would like to retire at the age of 75. Furthermore, you would like to have a retirement fund from which you can draw an income of $70,000 annually. You plan to reach this goal by making monthly deposits into an investment plan until you retire. How much do you need to deposit each month? Assume an APR of 8% compounded monthly, both as you pay into the retirement fund and when you collect from it later.

Answer rating: 100% (QA)

To determine the monthly deposit required to reach your retirement goal we can use the future value ... View the full answer