You have just turned 30 years old and accepted a job offer. Now you must...
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You have just turned 30 years old and accepted a job offer. Now you must decide how much money to put into your retirement plan. The plan works as follows:
Every dollar in the plan earns 7% per year. You cannot make withdrawals until you retire on your 65th birthday. After that point, you can make withdrawals as you see fit.
You decide that you will plan to live to 100 and work until you turn 65. You estimate that to live comfortably in retirement, you will need $80,000 per year starting on your 66th birthday and ending on your 100th birthday.
You are planning to contribute annually an amount of $10,000 to the plan starting on your 31st birthday until your 65th birthday (including).
a. (5 points) Form a timeline with the relevant information
b. (10 points) Calculate the amount you will have in your retirement account at the age of 65.
c. (5 points) Calculate the amount that will be left in your account at the time you reach 100 after you withdrew your last payment of $80,000
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