Jose, age 25, currently saves $13500 per year in his retirement account which is expected...
90.2K
Verified Solution
Link Copied!
Question
Finance
Jose, age 25, currently saves $13500 per year in his retirement account which is expected to earn 5% return. Jose is planning to retire at 62 and needs to fund his retirement upto age, 85. He has estimated that the annual amount needed during retirement would be $47,000 in today's dollar terms. The inflation rate is expected to be 1.5%. Compute the additional annual savings (if needed) to fund the shortfall in retirement account (if any).
a. $10,610
b. $5596
c. $2294
d. No additional savings are needed
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
