You start a new job at age 39 with a beginning salary of $72,000 per year paid m

Question

You start a new job at age 39 with a beginning salary of $72,000 per year paid monthly. You expect a 2% increase annually in your salary. You invest 10% of your salary and your employer gives you an additional 3% of your salary each year paid into your retirement account monthly. At the end of year 6 you get a $10,000 raise instead of the 2% increase. At the end of year 10 you get another $10,000 raise instead of the 2% increase. The investment firm that you have your retirement account with is averaging 10% gains on your money over your lifetime. You expect to live until you are 95 years old and would like to retire by the time you are 65. At what age will you be able to retire to receive $4000 per month to live on until you die at age 95?

Explanation / Answer

Question repeated 3 times. Cant skip so had to answer. Sorry dude!! :(

This question is related to Time Value of Money. Its a calculation intensive problem. A little patience can sail you through.

All the best

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