Government-funded pension plan

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Reference no: EM131178721

A junior employee, who just turned 25, decides to set up a personal retirement fund to supplement her government-funded pension plan during her first 20 years of retirement. She wants to have an annual income of $50,000 starting when she turns 65 and ending on her 84th birthday.

A. What lump sum must she invest today at 6 percent in order to achieve her retirement plan?

B.. How much must she invest each month at 6 percent starting now until she retires in order to achieve her retirement plan?

Reference no: EM131178721

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