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  3. 1. you wish to retire with $5 million in 45 years.

1. You wish to retire with $5 Million in 45 years. You estimate you will earn...

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Finance

1. You wish to retire with $5 Million in 45 years. You estimateyou will earn 8% on your investments. How much must you invest eachyear in order to reach your goal?a. Ordinary (1st payment made atthe end of the year)b. Due (1st payment made today)

2. You would like to withdraw $60,000 per year duringretirement. You expect to live 20 years after you retire at age 65.How much do you need to have saved by the time you retire if youcan earn 4% on your funds?

Answer & Explanation Solved by verified expert
3.6 Ratings (610 Votes)
1aInformation provided Future value 5000000 Time 45 years Interest rate 8 Ordinary Annuity refers to an annuity that occurs at the end of the period The future value of an ordinary annuity can be computed with the help of a financial calculator in the default END mode Enter the below in a financial    See Answer
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Transcribed Image Text

1. You wish to retire with $5 Million in 45 years. You estimateyou will earn 8% on your investments. How much must you invest eachyear in order to reach your goal?a. Ordinary (1st payment made atthe end of the year)b. Due (1st payment made today)2. You would like to withdraw $60,000 per year duringretirement. You expect to live 20 years after you retire at age 65.How much do you need to have saved by the time you retire if youcan earn 4% on your funds?

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