Accumulate tax free throughout their working lives

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Reference no: EM131972581

Sanjay and Marissa Gupta have decided to begin a retirement savings program where they will contribute to an account that will accumulate tax free throughout their working lives. The couple expects to retire in exactly 16 years from today, and their goal is to have accumulated the amount of $935 when they reach their future retirement age. In order to meet their goal, the couple will begin making contributions to a special account devoted to the retirement goal. Contributions to this account will begin one month from today, and the couple will continue placing equal monthly amounts into their retirement account for the next 16 years. What minimum amount needs to be placed in their account at the end of each month so that they'll reach their goal if the annual interest rate is 8%.

Reference no: EM131972581

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