Question

Alex

Answer 1

Answer:

hello your question lacks some vital information hence I will make valid assumptions to aid the solution

answer : $583333.33

Explanation:

22 yrs old

pre tax income = $35,000 per year

savings = $200/month

Determine how much you will need to retire at 67

lets assume : Interest rate = 6% per annum

annual withdrawable amount per year after retirement = $35,000

∴ amount to be saved up by 67 years = 35,000 / 6% = $583333.33

hence amount needed to retire at age 67

target amount = $583,333.33

interest rate = 6%

number of years = 67 - 22 = 45

savings per year needed = 583,333.33 / 45 = $12962.96

Note : saving $200 per month would not give the required amount needed to retire at age 67

The required monthly savings =  12962.96 / 12 = $1080.25