Sophia's financial goal for retirement is to be able to spend 39,600 per year. If their investments will earn 5.1% per year they want to fund 39 years of retirement, how much money will they need in their retirement account before they can retire

Solution

Sophia's financial goal for retirement is to be able to spend 39, 600 per year. If their investments will earn 5.1% per year they want to fund 39 years of retirement, how much money will they need in their retirement account before they can retire

Solution

Amount : 118364.4

Solution steps

Translate the problem into an equation:

A = 39600 (1 + 0.051 \cdot 39)

39600 (1 + 0.051 \cdot 39) = 118364.4

Amount : 118364.4

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