1.) You deposit $2500 into a retirement account at the age of 20, making an average of 2% annual return. How much will you have at the age of 65?

2.) You are trying to decide if you have enough money to retire. You are expecting $2,700 a month from Social Security. You have $1.4 million in your retirement savings, and you only want to use the earnings to live on, which is at 2.5% annual rate. You are currently making $63,000 a year and plan to live on 80% of that amount. Do you have enough to retire based on these numbers?

3.) If you made $3,000 a year in contributions to your retirement account starting at the age of 25, making an average of 5% annual return, how much will you have at the age of 65?

4.) You think you need $1.25 million and your retirement advisor thinks you will average 4% a year on your account. How much will you need to contribute a year to your account if you have 40 years to your retirement?

Answer rating: 100% (QA)

Here are the solutions 1 2500 deposited at age 20 growing ... View the full answer