Question

please reply with only the number answer to the underlined question. i do not want to see any other equations or numbers. just the answer to the underlined questions. thank you.

Question 3 1 pts In order for your clients to reach their retirement goal, let's say you've estimated that they need to have $2,500,000 accumulated by the time they retire at age 61. To reach that goal, how much do they need to save at the end of each month if they are currently 40 years old? They currently have $130,000 saved for retirement. Assume general inflation averages 2.8% per year, and based on their risk tolerance, your clients can earn an annual rate of return of 7.9% on their investments.

Answer 1

Since you are only asking for the number:

The amount that needs to be saved at the end of each month is $4822.80

Just in case the detailed solution is required;
The real rate of return after adjusting for inflation is (1.079/1.028) -1 = 4.96%

So the monthly rate of return is 4.96/12 = 0.4133

Now they are currently 40 years old and plan to retire at 61, so number of months is (61-40) * 12 = 252

Present value (savings at present) 130,000

Interest rate = 0.4133

Future value of saving =2500000

we have calculate the monthly savings, (PMT), use financial calculator

PMT comes out to be$ 4822.79