Question

Suppose you are 25 years old and would like to retire at age 65. Furthermore, you would like to have a retirement fund from which you can draw an income of $253,279 per year-forever! How can you do it? Assume a constant APR of 5% compounded monthly.

Answer 1

Explanation:

To retire at age 65 with a desired yearly income of $253,279, you need to deposit $2,944.91 per month.