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Term Project Part 1 -Retirement Planming To receive full credit you must show all ef your werk and get the correct answer for each problem. A young couple, both 25 years old, are planning to retire in 40 years at the age of 65. After they retire, they expect to live for an additional 20 years, until age 83. They plan to begin saving for retirement today and based on information from their financial planner, they think they will earn 8% on their investment compounded annually. They think they will earn 5% on their retirement savings after they retire 1. If they begin at age 25 to save $5,000 each year for the next 40 years, how much will this couple have saved in their retirement account at age 65? Answer (10 points) at age 25 to save $5,000 per year for the next 40 ycars. Assume they will be selling their business in5 years for S100,000, which will be deposit into their retirement account and leave there until age 65. How much will this couple have saved in their retirement account at age 65? Answer (10 points) 3. Referring to question # 1, how much will this couple have saved at age 65, if their earnings are compounded quarterly? Answer (10 points) 4. Using the answer from questiom I, if this couple is now age 65 and in good health and plans to travel and enjoy life. Since they are in good health chances of living until age 8 are quite good. If thy live until age 83 and are able to carn S% on their retirement savings, what is the maximum amount they can withdraw each year, assuming they plan to spend all of their savings? Answer (10 points) 5" Using the answer from question #1, this couple expects to earn 5% on their retirement funds beginning at age 65. If they live for another 20 years, how much can they withdraw each year, if they decide to leave $200,000 in their retirement account for their heirs? Answer (10 points)

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