Question 1 20 marks You are 28 years old today and decide to start saving...
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Question 1 20 marks You are 28 years old today and decide to start saving for retirement. Your goal is to be able to withdraw $50,000 per year from your account starting one year after you retire at age 65 and ending on your 95th birthday. You plan to deposit the same amount at the end of each year starting one year from now (your 29th birthday) and ending on the day you retire (your 65th birthday). The money will be deposited in an account paying 7%p.a compounded annually. a. What amount do you need to have in your account on the day you retire? (6 marks) b. What constant annual amount do you need to deposit in your account to fund your retirement goal? (6 marks) c. Now assume that you have already saved $30,000. If there is no change to your savings goal, how much does this change your required annual deposit? (8 marks)
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