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a new client comes into an investment office. she is looking to invest money into an...

a new client comes into an investment office. she is looking to invest money into an IRA. She determined that she wants to retire at age 68 and be able to withdraw $3500 a month from her IRA for the next 25 years. The IRA at that time will return 4% interest. If she is 33 years old right now and the IRA she wants to invest in return 11% interest until she retires, how much should she begin paying each month?
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Answer #1
Per month withdrawal 3500
Tenure 25 yrs
Months 300
Interest (yearly) 4%
Interest (monthly) 0.33%
NPV $663,083.69 -PV(4%/12,300,3500,,)
Current age 33
Years till retirement 35
No. of months 420
Rate of interest 11% annual
Rate of interest 0.92% monthly
Payment per month $134.55 -PMT(11%/12,420,0,663083.69,)
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