Ghow much do you need when you retire to provide a $2,500 monthly check that will last for 25 years? assume that your savings can earn 0.5% a month. $402,766.67 $414,008.24 $388,017.16 $361,526.14

The correct answer is $388,017.16

Explanation:

The assumption is that you have to save x money, that generates 0.5% a month, and that provide $2,500 monthly. The savings at second month will be (x-2500) * 1.005. At third month, the saving will be (((x - 2500) * 1.005)-2500)* 1.005. This continues until the twelfth month of the twenty fifth year. The short form of this calculations is , where C is the monthly provision (2500), i is the interest (0.5%) and t is the time (12 months per year, 25 years, 300 months). The result is .

answer; a set of mutual funds with similar risk characteristics to your mutual fund;