You plan to retire in 45 years. You would like to have a monthly retirement income...

   

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You plan to retire in 45 years. You would like to have a monthly retirement income of $5,000 and expect to live for 21 years after retirement. You expect to earn on average 6.5% per annum compounded monthly over the entire period. Required Provide all working. a. b. C. You can use the formulas at the back of this question booklet. You may rip off the back page for ease of use. What is the effective annual rate (EAR)? How much will you need to have saved by the time you retire? (4 marks) (7 marks) How much will you need to save each month for the next 45 years to have the retirement incomedo you desire (the amount you calculated in (b))? Go to Settings to ac You plan to retire in 45 years. You would like to have a monthly retirement income of $5,000 and expect to live for 21 years after retirement. You expect to earn on average 6.5% per annum compounded monthly over the entire period. Required Provide all working. a. b. C. You can use the formulas at the back of this question booklet. You may rip off the back page for ease of use. What is the effective annual rate (EAR)? How much will you need to have saved by the time you retire? (4 marks) (7 marks) How much will you need to save each month for the next 45 years to have the retirement incomedo you desire (the amount you calculated in (b))? Go to Settings to ac

Answer rating: 100% (QA)

a To find the effective annual rate EAR we can use the formula EAR 1 rnn 1 Where r annual interest r... View the full answer