Question: Question 1: You and your spouse are making plans for retirement. You plan on living 30 years after you retire and would like to have

Question 1: You and your spouse are making plans for retirement. You plan on living 30 years after you retire and would like to have $80,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 8% annually.

A: What amount do you need in your retirement account the day you retire?

Assume that your first withdrawal will be made the day you retire; however, you will still receive a total of 30 payments.

B: Under this assumption, what amount do you now need in your retirement account the day you retire?

Question 2: Your spouse wants to buy a 2020 Tesla Model X Performance sedan. The car costs $100,000 and would be financed with monthly payments over an 8-year period. The credit union is offering interest rates of 2.4% APR on monthly car loans.

A: How much are the payments?

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