Reference no: EM132070119

Your salary is 7200$ per month. Taxes, insurance will take about 35% of this amount. For your retirement plan, you plan to invest 5% of the remainder each month in small cap mutual fund, which will earn 13% APR compounded monthly. After 5 years, your salary will be 8500$/month. After the 35% expenses, you plan to invest 5% of the remainder in the retirement account. You will continue the same investment in the small cap fund, but will put additional money invested (on top of the amount that has been previously invested monthly in the small cap account) in a bond fund that earns 5%, compounded monthly. For the following 25 years, you plan to continue to invest this money the same way each month. Your goal is to have 1.25$ million when you retire in exactly 30 years. To get you there, you will supplement the above investments with a brokerage account that earns 6% APR, compounded monthly. How much will the monthly payment in this account have to be to accomplish your goal? Show your work.