Gordon Gecko is 25 years old today and is beginning to plan for his retirement. He...
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Gordon Gecko is 25 years old today and is beginning to plan for his retirement. He wants to set aside equal amounts for the next 40 years so that he can retire at age 65. He expects to live to a maximum age of 90 and wants to be able to withdraw $50,000 per year for 25 years at the end of each year. The account is expected to earn 8% APR for the working period and 5% APR for the retirement period. How much must he invest at the end of each month to achieve this goal? Gordon Gecko is 25 years old today and is beginning to plan for his retirement. He wants to set aside equal amounts for the next 40 years so that he can retire at age 65. He expects to live to a maximum age of 90 and wants to be able to withdraw $50,000 per year for 25 years at the end of each year. The account is expected to earn 8% APR for the working period and 5% APR for the retirement period. How much must he invest at the end of each month to achieve this goal?
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Answer rating: 100% (QA)
Working Period 25 years He must invest 184706 per month for t... View the full answer
Related Book For
Fundamentals Of Investing
ISBN: 9780135175217
14th Edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
Posted Date:
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