Marias monthly gross salary is $6,100. At the end of every month, she contributes 10%...
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Marias monthly gross salary is $6,100. At the end of every month, she contributes 10% of her monthly gross salary into a defined contribution pension plan. She is now 35 years old and expects to retire at the age of 55. She expects to withdraw an equal amount at the end of every month after retirement for a period of 25 years. The total monthly contributions will be invested in a mutual fund with an expected rate of return of 9 percent. In addition, she wants to have $100,000 at the age of 80 for protection against longevity. What is the size of the expected monthly withdrawal after her retirement?
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