Sam is currently 30 years of age. He owns his own business, and wants to retire at the age of
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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Question Posted: July 31, 2015 09:04:08