New employers contribution to meet his retirement objective

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Reference no: EM131444356

Robie has worked for Fun Inc. for many years. However, the firm did not appreciate him much. Now, he is moving to a new firm. At last at the age of 50, he is planning to move to a firm that is appreciating him. To attract him the new firm offers to contribute $600 at the end of each month for his retirement fund. He is planning to retire at age 65. Without being extravagant, he believes that he will be able to live on $2,000 per month during his retirement. He expects to live for 20 years in retirement. The investment opportunity that he has pays 8% (APR) compounded monthly. Robie realizes that with this investment return, he will not have enough to meet his retirement needs. He will need to set aside some additional funds every month in addition to the contribution he will be receiving from his employer. How much he needs to put into the account each month, in addition to his new employer’s contribution, to meet his retirement objective? For all computations keep nine digits after the decimal point.

Reference no: EM131444356

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