4. You are saving for retirement. Suppose you are comfortable with an annual salary of $65,000...
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4. You are saving for retirement. Suppose you are comfortable with an annual salary of $65,000 per year. You'd like to retire in 47 years and then plan to live for another 25 years. (a) What would be the equivalent of $65K in 47 years, accounting for inflation? (b) How much would you need in the account on retirement day in order to get this amount each year for 25 years? (c) Suppose you found a retirement account paying 6% interest compounded quarterly. How much money would you need to invest cach quarter for the next 47 years in order to have this balance in the bank on retirement day? 4. You are saving for retirement. Suppose you are comfortable with an annual salary of $65,000 per year. You'd like to retire in 47 years and then plan to live for another 25 years. (a) What would be the equivalent of $65K in 47 years, accounting for inflation? (b) How much would you need in the account on retirement day in order to get this amount each year for 25 years? (c) Suppose you found a retirement account paying 6% interest compounded quarterly. How much money would you need to invest cach quarter for the next 47 years in order to have this balance in the bank on retirement day?
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Answer rating: 100% (QA)
a To calculate the equivalent of 65000 in 47 years accounting for inflation we need to adjust for the effects of inflation over time The inflation rat... View the full answer
Related Book For
An Introduction to Management Science Quantitative Approach to Decision Making
ISBN: 978-1337406529
15th edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Posted Date:
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