You have won the lottery and received a check for $1,275,156 today. You invest the lottery check
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Question:
You have won the lottery and received a check for $1,275,156 today. You invest the lottery check today at an annual interest rate of 8% and allow it to build for a full ten years. At that point in time, you shift the money to an account paying only 6% per year. You plan to spend $175,000 per year in retirement (assume equal annual end-of-the-year cash flows) for 30 years, and your first retirement cash flow is exactly eleven years from today.
Will you have enough money to fully fund your desired retirement?
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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