Answer:
<em>hello your question lacks some vital information hence I will make valid assumptions to aid the solution </em>
answer : $583333.33
Explanation:
22 yrs old
pre tax income = $35,000 per year
savings = $200/month
<u>Determine how much you will need to retire at 67</u>
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
<u>hence amount needed to retire at age 67 </u>
target amount = $583,333.33
interest rate = 6%
number of years = 67 - 22 = 45
savings per year needed = 583,333.33 / 45 = $12962.96
<em>Note : saving $200 per month would not give the required amount needed to retire at age 67 </em>
The required monthly savings = 12962.96 / 12 = $1080.25
