Determine how much monthly your friend needs to save

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Question - A 25-year-old friend wishes to accumulate the necessary funds to receive at the time of his retirement at 65, a monthly amount of $ 5,000 (per month) for an expected period of 20 years.

The interest rate in effect between today and the expected date of retirement is 7.5% nominal capitalized quarterly, while the expected interest rate for the 20 years following the time of retirement is 5.2%. nominal capitalized weekly.

a) Determine how much monthly your friend needs to save in order to accumulate the funds that would ensure that they reach their goals?

b) If your friend only wanted to contribute a monthly savings amount for the first 10 years (from today, at age 25), how much would he save per month?

Reference no: EM132988197

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