Interest rate               = 3% pa

Duration                     = 21 years

Expected amount     = 24000

Month interest rate   =3/100*12

=1.002

Therefore 1.0025252

1.87613-1                     =0.87613

2000/0.87613

= $2,283/ Month

Note: 2000 has been derived from the previous arithmetic

It is clear to note that when I delay the retirement saving plan by duration of 5 years then monthly savings would shoot higher than the initial fund. Such a figure is made possible so as attain the proposed accumulated amount for a better life after the retirement. Meanwhile, the possibility of getting an account that pays an interest rate of 4% pa would amount to lower savings thus leading to a more improved life after retirement.

Calculations

Interest rate             = 4% pa

Duration                   = 21 years

Expected amount     = $24,000

Month interest rate =4/100*12

=0.48

Therefore 0.48252

4.7075-1 =3.7075

2000/3.7075

=$539.447/ Month: proposed monthly savings when 4% interest rate is adopted

From the case study, it has been pointed out that the in-laws comfortably spend $ 50,000 annually to sort issues of house rent, food, school fees among other expenditure. Putting into considerations the escalating food prices and the national economic growth rate, there are more possibilities that I would live in a tougher economic situation when I retire in the next 17years. The probability is high even if we shall be living in the same city (Buffalo, NY). Based on arithmetic, I would need approximately $850 by then to enjoy a similar life as my uncles that is not possible putting considerations to the current economic constraints.

In order to put things right and enjoy a good retirement life then, it is advisable to develop a proper scheme that would see both the retirement company and the account holder enjoying substantial benefit from each other. As such, my projected retirement plan will require a lot of money compared to my in-laws whether I retire either in the next 17 or 21 years. For this reason, it is advisable for all employees to design a better retirement plan so as to avoid straining themselves with a lot of savings at the interest of the better future.