Get your original paper written from scratch starting at just $10 per page with a plagiarism report and free revisions included!
Calculation and tell them how many percents of their income that they need to invest every month to achieve their retirement goal. Show your steps!
E.g., I have an imaginary friend who will retire in 13 years. She will need to have 80% of her current after-tax income, which is $4,000 per month after retirement. She can start investing right now, and she has $50,000 in her savings account.
1. She will need $ X for every month after retirement
2. The amount of money she needs in the bank account after 10 years is: $ Y
3. The amount of money that she needs to invest every month from now is $ Z, which is W% of her current after-tax income.
( X, Y, Z, W are variables)
Is the plan possible? if not, what should she do to make it possible? ( delay the retirement, find a higher paying job, etc.)
( *for more straightforward calculation, use Interest rate = 10%, and no inflation rate, he/she invests in a tax-free retirement account and treats retirement income as a perpetuity payment)