Ron is 30 years old and is retiring at the age of 65. When he retires, he will need a monthly income of $1,270 for 10 years. If
Ron contributes 5% of his monthly income to a 401(k) paying 2.75% compounded monthly, will he reach his goal for
retirement given that his monthly income is $1,571.12? If he does not make his goal then state by what amount he will need
to supplement his income. Round all answers to the nearest cent.
a. Ron will meet his monthly goal of exactly $1,270 for retirement
b. Ron will meet his monthly goal of $1,270 for retirement with an excess of $7.42.
C. Ron will not make his monthly goal of $1,270 and will need $74.16 to supplement his monthly
income when he retires.
d. Ron will not make his monthly goal of $1,270 and will need $741.68 to supplement his monthly
income when he retires.