Question

A company offers you employment for the next 25 years until retirement but will not pay you a pension when you do retire, so you start investing now for your retirement. You know you can earn 6% compounded monthly on an available investment for the next 25 years until you retire. During retirement, you will earn 4% compounded annually on any funds remaining in the investment, and you expect to withdraw $120,000 at the end of each year of your retirement. If you anticipate living 18 years in retirement, how much of your salary as a minimum would you have to invest at the end of each year until retirement?

Answer #1

A company offers you employment for the next 25 years until
retirement but will not pay you a pension when you do retire, so
you start investing now for your retirement. You know you can earn
6% compounded monthly on an available investment for the next 25
years until you retire. During retirement you will earn 4%
compounded annually on any funds remaining in the investment, and
you expect to withdraw $120,000 at the end of each year of your...

You are planning to save for retirement over the next 25 years.
To do this, you will invest $500 per month in a retirement account.
The rate of return for the retirement account is expected to be 9
percent per year. After you retire, you expect that the account
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each month from your account assuming a 20-year withdrawal period
during retirement?

You plan to retire in year 20 Your retirement will last 25
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How much will you have to save each month until retirement if
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A. $4,685
B. $908
C. $2,135
D. $719

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If you save a constant percentage of your salary, what
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You want to retire in 40 years and plan to invest $1,800 per
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Harry is planning to save for retirement over the next 25 years.
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