Question

A newscaster earns $31,800 and wants to invest 10% of his/her monthly salary to save for retirement in 24 years. If he/she invests this money at 5.5% compounded monthly, how much money will he/she have at retirement? a) How much will be saved each year? $ b) What will be the monthly deposit? $ c) What will be the amount in the account after 24 years? $

Answer 1

Answer: a) The amount saved each year will be 10% of the annual salary, which is:

10% x $31,800 = $3,180

b) the monthly deposit will be $265.

c) the amount in the account after 24 years will be $76,046.92.

Explanation: