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Ross has decided that he wants to build enough retirement wealth that, if invested at 5...

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Finance

Ross has decided that he wants to build enough retirement wealththat, if invested at 5 percent per year, will provide him with$5,000 of monthly income for 30 years. To date, he's saved nothing,but he still has 20 years until he retires. How much money does heneed to contribute per month to reach his goal?

Answer & Explanation Solved by verified expert
3.8 Ratings (646 Votes)
Formula for PV of annuity can be used to compute required fund size to facilitate the retirement monthly income as PV P x 1 1rnr P Periodic payment 5000 r Rate of interest 5 pa or    See Answer
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