Question

Solve the below independent questions (Show all your calculations) 1) Sami tumed 30 today and wishes to retire after 35 years when he tums 65. When he buy a car for will be needing a monthly pen How much should he save monthly during the firt or 9 \% compo Assume an APR of 6% compound first 35 years to be able to meet his

Answer 1

To meet his retirement goal, Sami should save approximately $133.39 per month.

Step-by-step explanation:

To calculate the amount Sami should save monthly to meet his retirement goal, we need to consider compound interest. Sami wants to retire in 35 years when he turns 65. Let's assume an annual interest rate of 6% compounded monthly.

Using the formula for compound interest, the future value (FV) of Sami's monthly savings will be:

FV = P(1 + r/n)^(nt)

Where FV is the future value, P is the monthly savings, r is the annual interest rate (6%), n is the number of times the interest is compounded per year (12), and t is the number of years (35).

Let's assume Sami wants to save for a car worth $20,000. We can set up the equation:

$20,000 = P(1 + 0.06/12)^(12*35)

Now we can solve for P:

P = $20,000 / (1 + 0.06/12)^(12*35)

We can plug this equation into a calculator or spreadsheet to find the monthly savings required. The value of P comes out to be approximately $133.39.