Currently, at age 29 you are entering the job market. You wish to retire at the age
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Currently, at age 29 you are entering the job market. You wish to retire at the age of 65 and your projected life span is to live until age 83. You figure that you can live comfortably on $85,000 per year during your years of retirement. Current market rates indicate that you should be able to earn 7.5% interest per year.
a. How much money will you need to accumulate by the age of 65 to provide you with an $85,000 annuity until you expect to die?
b. How much money will you need to save each year during your career in order to accumulate the amount computed in Part A?
Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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