Question: You are trying to decide how much to save for retirement. Assume you plan to save $ 7 000 $7000 per year with the first

You are trying to decide how much to save for retirement. Assume you plan to save $ 7 000

$7000 per year with the first investment made 1 year from now. You think you can earn 12.0

12.0% per year on your investments and you plan to retire in 45

45 years immediately after making your last $ 7 000

$7000 investment.

a.How much will you have in your retirement account on the day youretire?

b. If, instead of investing $ 7 000

$7000 peryear, you wanted to make one lump sum investment today for yourretirement, how much would that lump sum need tobe?

c. If you hope to live for 26

26 years inretirement, how much can you withdraw every year in retirement(starting one year afterretirement) so that you will just exhaust your savings after 26

26 withdrawals(assume your savings will continue to earn 12.0

12.0% inretirement)?

d. If, instead, you decide to withdraw $1 902 000

1902000 per year in retirement(again with the first withdrawal one year afterretiring), how many years will it take until you exhaust yoursavings?

e.Assuming the most you can afford to save is $ 1 400

$1400 peryear, but you want to retire with $1 000 000

1000000 in your investmentaccount, how high of a return do you need to earn on yourinvestments?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Question 13 The following program generates an error. Why? final int HAND SIZE = 5; int[] hand int i; hand[0] = 1; hand[1] = 7; new int[HAND_SIZE]; hand[2] = 4; for (i=0; i

Article: https://bmcnurs.biomedcentral.com/articles/10.1186/s12912-023-01443-1 List the statistical procedures performed to describe the sample. 5 pts List the statistical procedures performed to...

(Corporate income tax) Meyer Inc. has taxable income (earningsbefore taxes) of $290,000. Calculate Meyer's federal income taxliability using the tax table shown in the popup window What arethe firm 2...

You are trying to decide how much to save for retirement. Assume you plan to save Ksh 50,000 per year in your retirement account with the first contribution made today when you are celebrating your...

Hi I need help on all of them a-e. You are trying to decide how much to save for retirement. Assume you plan to save $ 5,000 $5,000 per year with the first investment made one year from now. You...

You are trying to decide how much to save for retirement. Assume you plan to save $ 6, 500 per year with the first investment made one year from now. You think you can earn 9.0% per year on your...

Question D&E plz You are trying to decide how much to save for retirement. Assume you plan to save S8 000 per year with the first investment made one year from now. You think you can eam 7.0% per...

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 1 year from now. You think you can earn 11.0% per year on your...

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 1 year from now. You think you can earn 8.0% per year on your...

You are trying to decide how much to save for retirement. Assume you plan to save $4 000 per year with the first investment made 1 year from now. You think you can earn 7.5% per year on your...

Allerton Company acquires all of Deluxe Companys assets and liabilities for cash on January 1, 2015, and subsequently formally dissolves Deluxe. At the acquisition date, the following book and fair...

Selected accounts and related amounts for Sciatic Co. for the fiscal year ended July 31, 2006, are presented in Alternate Problem 5-1B. Instructions 1. Prepare a single-step income statement. 2....

1 0 0 pts / 1 7 0 0 Question 2 of 1 7 Find the derivative of the function f ( x ) = 1 4 x 2 1 0 at number 1 3 . ( Use symbolic notation and fractions where needed. ) f ' ( 1 3 ) = Search

Is there a relationship between the amount of time a student studies and a students GPA? Access the Georgia Student Survey file on the books website or use your class data to explore this question...

About 40,000 J of energy is stored in a typical 1.5-V D-cell battery. If two such batteries are joined to produce a total of 3.0 V in a flashlight circuit and cause 2.0 A of current to flow through...

What languages allow subprogram definitions to be nested?

The robotic device consists of the stationary pedestal OA, arm AB pivoted at A, and arm BC pivoted at B. The rotation axes are normal to the plane of the figure. Estimate (a) The moment MA applied to...

Active Consulting, a proprietorship, has the following year-end account balances: Service Revenue $426,500; Salaries and Wages Expense $219,000; Rent Expense $74,000; Utilities Expense $33,000; and...

Design a minimum-mass symmetric three-bar truss (the area of member 1 and that of member 3 are the same) to support a load P, as was shown in Fig. 2.9. The following notation may be used: Pu = P cos...

17. Why do we usually set our criterion for significance at 0.05? (a) This is the traditional level used by most psychologists (b) This represents a good balance between making Type I and Type II...

15. A researcher has conducted a study on reaction times with 20 participants in each of two conditions. She finds that the variance for the first condition is 2 seconds and for the second condition...

12. If we reject the null hypothesis when it is, in fact, true then we have: (a) Made a Type I error (b) Made a Type II error (c) Made scientific progress (d) Both (b) and (c) above