Question: Lynda ( age 3 5 ) is a data analyst and earns $ 1 0 0 , 0 0 0 per year. She is an

Lynda (age 35) is a data analyst and earns $100,000 per year. She is an avid adventurer and would like
to retire as early as possible. She currently pays total taxes of 40%(including state, federal, and payroll).
She spends about $40,000 on required expenses, such as rent, food, etc. Although she spends a lot of
money on frivolous items, she has savings of $200,000. Lynda is conservative and wants to assume a
6% annual investment rate of return and inflation of 3% per year. Based on her family history, Lynda
expects that she will live to be 95 years old. Assuming she could live on $40,000 per year, how much
would she have to save every year to retire at age 50?
a. $46,077.
 Lynda (age 35) is a data analyst and earns $100,000 per

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