Cameron Started Contributing $400 Per Month to a Retirement Account

question 7

Essay

Cameron started contributing $400 per month to a retirement account when he was married at the age of 26.The account earned 8.7% compounded monthly until Cameron's finances changed when he was 48.His first child started college that year.Cameron didn't want to pay taxes or a penalty on an early withdrawal,but he did stop his monthly contributions to help pay for college.He moved the money in the account to a more conservative investment paying 4.9% compounded monthly until he was 60 and could begin withdrawing funds without penalty.Now Cameron wants to withdraw $2,500 per month to supplement his pension.How old will Cameron be when the money in this account runs out?

---

Definitions:

Tolerance

The body's reduced response to a drug after repeated use, necessitating higher doses to achieve the same effect.

Rumination

The focused attention on the symptoms of one's distress, and on its possible causes and consequences, as opposed to its solutions.

Legalization

The process of making an act, practice, or substance legally permissible by law.

Marijuana

A psychoactive drug derived from the Cannabis sativa plant, used both for medical purposes and recreational use.