Adam is wanting to start saving for retirement but they don’t know how much they can afford to save from their monthly budget. Help Adam find their monthly cash flow.

Adam works at Tim Horton’s making $15/hour, 32 hours a week. (Assume they take no vacations.)

Expenses are: Rent: $650/month, Groceries: $75/week, Utilities: $120/month, Car Insurance: $118/month, Gasoline: $30/week, and Miscellaneous: $400/month

Saving for Retirement (20 Pts)

Now, let’s pretend you are Adam. How much of your ending cash flow would you want to save for retirement? This will be the amount they will put in the IRA monthly.

Retirement Amount (20 Pts)

If Adam retires in 35 years and finds an IRA for 4.8%, how much money will be in their retirement account when they retire?

Amount Deposited (20 Pts)

How much will Adam deposit in total to their IRA?

Interest Accrued (20 Pts)

How much will Adam accrue in interest from their IRA?