Spencer plans to work for 45 years. He also plans to spend $250,000 per year during his 40 years of retirement. If Spencer gets paid every other week, how much of each paycheck does he need to save, in order to live this lifestyle during retirement? Assume his retirement account earns an APR of 10% compounded monthly and that he will have no money left after 40 years of retirement.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 14P
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Spencer plans to work for 45 years. He also plans to spend $250,000 per year during his 40 years of retirement. If Spencer gets paid every other week, how much of each paycheck does he need to save, in order to live this lifestyle during retirement? Assume his retirement account earns an APR of 10% compounded monthly and that he will have no money left after 40 years of retirement.

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