# Retirement Planning

A 52-year-old client asks an accountant how to plan for his future retirement at age 62. He expects income from Social Security in the amount of \$21,600 per year and a retirement pension of \$40,500 per year from his employer. He wants to make monthly contributions to an investment plan that pays 8%, compounded monthly, for 10 years so that he will have a total income of \$83,700 per year for 30 years. What will the size of the monthly contributions have to be to accomplish this goal, if it is assumed that money will be worth 8%, compounded continuously, throughout the period after he is 62?

1. How much money must the client withdraw annually from his investment plan during his retirement so that his total income goal is met?

2. How much money S must the client’s account contain when he is 62 so that it will generate this annual amount for 30 years? (Him: S can be considered the present value over 30 years of a continuous income stream with the amount you found in Question 1 as its annual rate of flow.)

3. The monthly contribution R that would, after 10 years, amount to the present value S found in Question 2 can be obtained from the formula:

R=S[i/((1+i)^n-1)]

where i represents the monthly interest rate and n the number of months. Find the client’s monthly contribution, R.

Level of Detail: Show all work

# Our guarantees

Study Acers provides students with tutoring and help them save time, and excel in their courses. Students LOVE us!No matter what kind of essay paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcers. Save more time for yourself. Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.