Current balance of the clients investment account

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Your financial planning client wishes to have investment savings in 20 years that will provide $1.0 million dollars of purchasing power, measured in today's (real) dollars. The current balance of the client's investment account is $75,000. Nominal investment rates of return are 9.2% per annum, the expected inflation rate is 4% per annum, and the real rate of return is 5% per annum. In today’s (real) dollars, how much must the client save per month starting at the end of the current month to accomplish this goal, given these rates of return? Assume monthly compounding.

Reference no: EM13977974

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