Philip Dawson is working with his financial planner to estimate the amount of savings required to...

 

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Philip Dawson is working with his financial planner to estimate the amount of savings required to realize his retirement goals. His spending need is $70,000 per year for 30 years, with the first payment starting at the end of his 67th year. Dawson is currently 50 years old, has a $195,000 retirement account today (t=0), and knows that he will contribute $10,000 at year end for the next five years (t=1 to t= 5). His adviser thinks Dawson's portfolio should conservatively earn an average return of six percent per year. The amount that he must contribute each year starting at age 56 and ending at age 66 (t=6 to t = 16) is closest to: Correct $24,123 Your Answer $38,724 $57,225 Philip Dawson is working with his financial planner to estimate the amount of savings required to realize his retirement goals. His spending need is $70,000 per year for 30 years, with the first payment starting at the end of his 67th year. Dawson is currently 50 years old, has a $195,000 retirement account today (t=0), and knows that he will contribute $10,000 at year end for the next five years (t=1 to t= 5). His adviser thinks Dawson's portfolio should conservatively earn an average return of six percent per year. The amount that he must contribute each year starting at age 56 and ending at age 66 (t=6 to t = 16) is closest to: Correct $24,123 Your Answer $38,724 $57,225

Answer rating: 100% (QA)

Lets begin with 2010 Particulars Cleary Wasser Nolan Investments 100000 150000 200000 10 interest on Investment 10000 15000 20000 Annual Compensation ... View the full answer