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Suppose that you are age 25 today and plan on retiring at age 65. You...

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Finance

Suppose that you are age 25 today and plan on retiring at age 65. You determined that you need to have saved $637,793 in real dollars by the time you retire. How much must you contribute (in real dollars) each year to your retirement account to achieve your goal? Assume the following:

  • you make annual contributions;
  • each contribution is the same amount in real dollars;
  • the first contribution will be one year from today;
  • your last contribution will be at age 65;
  • your portfolio earns a real annual rate of return of 6.4%, compounded annually.

Do not round at intermediate steps in your calculation. Round your answer to the nearest dollar. Do not type the $ symbol.

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