Problem
Sometimes retirement planners suggest that people set a ‘‘target'' for retirement income. For example, the advice might be ‘‘Be sure to have accumulated $1,000,000 by the time you are 60.'' Assuming that the target remains unchanged, how would an increase in the real interest rate affect a person's level of savings to reach this target? Is it appropriate to hold the target constant when the real interest rate changes?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.