Answer to Question #147770 in Finance for manish kush

Question #147770
A twenty-year-old decides to save Rs.1,000 per month into a retirement account that will
mature when she will turn 65. How much will she accumulate assuming that the she gets
a return @12% per annum compounded monthly? How much will a 40-year-old get if he
makes a similar investment? How much more does he need to invest to get the same
amount?
1
Expert's answer
2020-12-17T07:43:20-0500

in 65 years:

1000*\frac{(1+0.12/12)*((1+0.12/12)^{(65-12)*12}-1}{1.01-1}=56,485,795.36

40-year-old:

1000*\frac{(1+0.12/12)*((1+0.12/12)^{(65-40)*12}-1}{1.01-1}=1,897,635.09 - will get

needs to invest per month:

56,485,795.36-1,897,635.09=54,588,160.27

54,588,160.27/\frac{(1+0.12/12)*((1+0.12/12)^{(65-40)*12}-1}{1.01-1}=29,054.08

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