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Time Value of Money

Larry, who is now 35 year old, has decided that he wants to build enough retirement wealth that, if invested at 8% per year, will provide him with $3,500 per month for 30 years during his retirement. To date, he has saved nothing, but he has 25 years to accomplish his goal. How much money does he need to save every month for the next 25 years in order to reach his goal?

Solution Summary

The solution explains how to calculate the monthly savings so as to reach the desired amount on retirement