Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. question 1 20 marks you are 28 years old today and

Question 1 20 marks You are 28 years old today and decide to start saving...

50.1K

Verified Solution

Question

Finance

image

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)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

KEY PART that is TRICKY for me: (The vapor pressure of water is 23.78 mmHg at...

Chemistry
Q

Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1,...

Accounting
Q

Find the polar form of the following phasors 1 10 j5 2 3 j6 3...

Basic Math
Q

f x 6 cos x on 27 2 Its derivative is f x help formulas...

Calculus
Q

Question content area top Part 1 The lawyer for a credit union member has sent...

Algebra
Q

Find the rank and nullity of the matrix then verify that the values obtained satisfy...

Algebra
Q

Clevland Company manufactures an equipment with an estimated economic life of 5 years and leases...

Accounting
Q

Use the following information to answer the next six questions: A Determine the Working Capital...

Accounting
Q

How long will it take $5,000 to grow to $15,000 if it is invested at...

Accounting
Q

please answer fully Yield to maturity. What is the yield of each...

Finance
Q

Shareholder D transfer a building to K Corporation that has a basis of $50,000 and...

Accounting
Q

Cullumber Co. uses a perpetual inventory system and both an accounts receivable and an accounts...

Accounting