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Solve this retirement problem and show ALL steps. If Bob is 27 years old, has...

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Accounting

Solve this retirement problem and show ALL steps.

If Bob is 27 years old, has a pre-tax income of $50,000, saves $633 per month, and has a current savings of $30,000, how much money will Bob have per month if he retires at 67 years old?

These are the assumptions:

-Bob will spend $1950 per month in retirement

-Bob will also have $300 a month of extra income while in retirement

-The investment rate of return is 6%

-Bob's life expectancy is 95 years old

SHOW ALL WORK PLEASE

The answer is known to be $2,450 per month with a total of $1.84 million of retirement money at the age of 67, but I need to know how we get this answer.

Answer & Explanation Solved by verified expert
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