simulation of retirement portfolio

Project Description:

lynn price recently completed her mba and accepted a job with an electronics manufacturing
company. although she likes her job, she also is looking forward to retiring
one day. to ensure that her retirement is comfortable, lynn intends to invest
$3,000 of her salary into a tax-sheltered retirement fund at the end of each year. lynn
is not certain what rate of return this investment will earn each year, but she expects
that each year’s rate of return could be modeled appropriately as a normally distributed
random variable with a mean of 12.5% and standard deviation of 2%.
a. if lynn is 30 years old, how much money should she expect to have in her
retirement fund at age 60? (use 5000 replications.)
b. construct a 95% confidence interval for the average amount that lynn will have
at age 60.
c. what is the probability that lynn will have more than $1 million in her retirement
fund when she reaches age 60?
d. how much should lynn invest each year if she wants there to be a 90% chance
of having at least $1 million in her retirement fund at age 60?
e. suppose that lynn contributes $3,000 annually to her retirement fund for eight
years and then terminates these annual contributions. how much of her salary
would she have contributed to this retirement plan and how much money could
she expect to have accumulated at age 60?
Skills Required:
Project Stats:

Price Type: Negotiable

Total Proposals: 4
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