You would like to start saving for your retirement and are trying to figure out how much
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Question:
You would like to start saving for your retirement and are trying to figure out how much to save. You estimate that you will need $250,000 per year for the 30 years you’ll be retired. In addition, you’d like to have an additional $100,000 in your fifth year of retirement to buy a boat. Assume that you plan to save an equal amount of money every year, starting next year for the 35 years you will be working (save in years 1-35, withdraw in years 36 -65, buy boat in year 41).
How much do you need to save each year if the interest rate is 9% for the years you are working (years 1 – 35) and will fall to 6% for the years you are retired (36 – 65).
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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