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December 19, 2014

December 19, 2014

Posted by **Chase** on Wednesday, April 4, 2012 at 11:06am.

I am having difficulty with this problem because once you reach the age of 60, the sum of money you have saved between 23 and 60 (whatever amount that is) keeps accruing interest (at 1 % percent a month) while you you withdraw $6000 a month. I don't know how to find the sum of money you need to save between 23 and 60.

- Finance (Engineering Economics) -
**bobpursley**, Wednesday, April 4, 2012 at 11:16am1. calculate the Present worth of those monthly payments of 6K for 25 years. That will be the nest egg you need at age 60.

2. calculate the future value of the monthly payments beginning at age 23 and ending at age 60 (37 years?).

Now your question. If you have a nest egg at 60, its future value is automatically calculated as you had figured in 1) above.

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