An employee's current annual gross wage is $63,900.



Part A: Calculate how much will be needed in retirement if the employee wants to have enough saved to live off 80% of the
current annual gross wage and withdraw 4% the first year.




Part B: The employee determines that they can contribute $600 per month to a retirement account with a 5.5% monthly
compounded interest rate. Calculate the account balance if the employee plans to retire in 40 years. Show all steps. (3
points)



Part C: Using your values from Part A and Part B, calculate the difference between the employee's goal and the actual retirement account balance. Explain whether the employee will meet their retirement goal. (4 points)