# Sam is currently 30 years of age. He owns his own business, and wants to retire at the age of

## Question:

a. If Sam believes he will live to age 90, how much does he have to accumulate by the time he reaches age 60 to receive $72,000 at the end of each year for rest of his life? Sam believes he can earn 8 percent on his money in a stock mutual fund.

b. How much does he have to accumulate if he wants the payment of $72,000 at the beginning of each year?

c. What dollar amount of interest will Sam have earned during retirement if he receives his $72,000 at the beginning of each year?

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