Withdrawal will be made at the end of first retirement month

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Your friend turned 22 today, and he is planning to save $250 per month for his retirement, with the first deposit to be made at the end of the 1st month. He will invest in a mutual fund that’s expected to provide a return of 6% per year. He plans to retire 38 years from today, when he turns 60, and he expects to live for 25 years after retirement, to the age 85. Under these assumptions, how much can he spend each month after he retires? His first withdrawal will be made at the end of his first retirement month. Show every step of your calculations.

Reference no: EM131327706

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