Sierra plans to retire at age 63, and estimates that $69,600 a year in retirement for 22 years will be needed. That annual amount will be paid out in monthly income checks. To save for retirement, Sierra plans to put money every month into a 401k plan at work. If Sierra is currently 27, how much will need to be saved each month to meet the retirement goal, assuming the retirement accounts earn an average of 6.3% per year. Answer = $ (Round to the nearest cent/penny)

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter9: Sequences, Probability And Counting Theory
Section: Chapter Questions
Problem 29RE: Alejandro deposits $80 of his monthly earnings into an annuity that earns 6.25% annual interest,...
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Sierra plans to retire at age 63, and estimates that $69,600 a year in retirement for 22 years will be
needed. That annual amount will be paid out in monthly income checks. To save for retirement, Sierra
plans to put money every month into a 401k plan at work. If Sierra is currently 27, how much will need to
be saved each month to meet the retirement goal, assuming the retirement accounts earn an average of
6.3% per year.
Answer = $
(Round to the nearest cent/penny)
%3D
Transcribed Image Text:Sierra plans to retire at age 63, and estimates that $69,600 a year in retirement for 22 years will be needed. That annual amount will be paid out in monthly income checks. To save for retirement, Sierra plans to put money every month into a 401k plan at work. If Sierra is currently 27, how much will need to be saved each month to meet the retirement goal, assuming the retirement accounts earn an average of 6.3% per year. Answer = $ (Round to the nearest cent/penny) %3D
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