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You are 30 years old and want to retire at 55. However, you do not want...

You are 30 years old and want to retire at 55. However, you do not want to start withdrawing your retirement accounts and social security until 62. You must, therefore, fund 7 years' worth of living expenses and you estimate you'll need $5,750/month during that period. If you earn 3% on any money invested in non-retirement accounts during the 55-62 time period and can earn 6% annually on your investments prior to age 55, how much must you invest at the end of each month starting next month to fund your early retirement?

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Answer #1

Amount to be invested at the end of each month=PMT(6%/12,12*25,0,-PV(3%/12,12*7,-5750,0))=$627.95

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