Question: PLEASE HELP ME ANSWER THIS FINANCE HW PROBLM! I WILL RATE!! THANK YOU!! You are trying to decide how much to save for retirement. Assume

PLEASE HELP ME ANSWER THIS FINANCE HW PROBLM! I WILL RATE!! THANK YOU!!

You are trying to decide how much to save for retirement. Assume you plan to save $7,000 per year with the first investment made one year from now. You think you can earn 9.0% per year on your investments and you plan to retire in37 years, immediately after making your last $7,000 investment.

c. If you hope to live for 16 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the16th withdrawal (assume your savings will continue to earn 9.0% in retirement)?

The amount you can withdraw every year in retirement is $_____?

d. If, instead, you decide to withdraw $362,000per year in retirement (again with the first withdrawal one year after retiring), how many years will it take until you exhaust your savings? (Use trial-and-error, a financial calculator: solve for "N", or Excel: function NPER)

You will exhaust your savings in _____ years.

e. Assuming the most you can afford to save is $1,400 per year, but you want to retire with $1,000,000

in your investment account, how high of a return do you need to earn on your investments? (Use trial-and-error, a financialcalculator: solve for the interest rate, or Excel: function RATE)

You will need a return of ______%.

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