(Answered) The carters are hoping to retire in five years and are

Finance

The Carters are hoping to retire in five years and are saving monthly toward that goal. Their established goal was to have $400,000 by making payments of $5,587.15 at the end of each month. They assumed they could earn a 7% aftertax rate of return but, after talking with their financial advisor, realize that 6% is a more realistic return expectation.

Based on this new assumption, what change should the Carter's make to their planned monthly savings to still reach their goal in five years?

Select one:

a. Increase monthly payments by $55.87

b. Increase monthly payments by $86.47

c. Increase monthly payments by $145.97

d. Increase monthly payments by $279.35

e. Increase monthly payments by $326.06

Please show your work. This is a typical TVM calculator problem.

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