A junior employee, who just turned 25, decides to set up a personal retirement fund to supplement
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A junior employee, who just turned 25, decides to set up a personal retirement fund to supplement her government-funded pension plan during her first 20 years of retirement. She wants to have an annual income of $50,000 starting when she turns 65 and ending on her 84th birthday.
a. What lump sum must she invest today at 6 percent in order to achieve her retirement plan?
b. How much must she invest each month at 6 percent starting now until she retires in order to achieve her retirement plan?
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Related Book For
Finance For Executives Managing For Value Creation
ISBN: 9781473749245
6th Edition
Authors: Gabriel Hawawini, Claude Viallet
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