You've just started working and you want to save for your two main goals. The first is
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You've just started working and you want to save for your two main goals. The first is to retire at age 60, in exactly 35 years. You hope to live at least 35 years as a retiree and withdraw $50,000 at the beginning of each year of your retirement. Your second goal is to purchase a new red car in exactly 4 years at a cost of $22,000. You expect to save $500 at the end of each month for the first 10 years and nothing thereafter. Experts predict a nominal interest rate of 11% capitalized monthly for the next 20 years and an effective interest rate of 14% thereafter.
Will your savings be enough to buy the car and retire?
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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