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Assume that you are now 20 years old. You would like to retire at age 60...

Assume that you are now 20 years old. You would like to retire at age 60 and have a retirement fund of $6,000,000 at the time of your retirement. You have already $10,000 at age 20 in the retirement account. You expect to earn 6% per year. The amount of money you must set aside each month to reach your retirement goal is:

A.

$2500.00
B.

$3067.84
C.

$4,377.98
D.

$3500.00
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Answer #1

Ans:- In this question, we need to find the Monthly Investment in order to achieve the retirement goal. we will use the PMT function of excel to find the answer.

Rate = 6%/12, Nper = (60-20)*12 = 40*12, PV= -$10,000, FV = -$6,000,000.

Therefore, the monthly payment that needs to be done to achieve retirement goal is $3,067.84. option B is the right answer.

Note:- If this answer helps you pls give thumbs up.

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