Question

You just turned 34 years old, and you want to begin saving for retirement at the...

You just turned 34 years old, and you want to begin saving for retirement at the end of the year. Assume that you retire in 30 years at age 65, and would like to have an income of $100,000 per year for 20 years after retirement. How much must you save each year to finance your retirement income? Assume a 10% interest rate, you make the first payment at the end of the year when you turn 35 and the last payment on the day you turn 64 (30 payments), and that you make the first withdrawal when you turn 65 and the last withdrawal when you turn 84 (20 payments).

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

* please like and comment.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Using Excel You have just turned 35, and you intend to start saving for your retirement....
Using Excel You have just turned 35, and you intend to start saving for your retirement. Once you retire in 30 years (when you turn 65), you would like to have an income of $100,000 per year for the next 20 years. Calculate how much you would have to save between now and age 65 in order to finance your retirement income. Make the following assumptions: • All savings draw compound interest of 10% per year. • You make the...
You just turned 20 years old and want to retire when you turn 65. You plan...
You just turned 20 years old and want to retire when you turn 65. You plan to put $3,500 every year into a ROTH IRA, a retirement account from which you can withdraw money after retirement without having to pay any taxes. You expect to earn a return of 4% on your investments every year.   1. How much money can you expect to have at age 65 if you make your first annual deposit now and your last one on...
You just turned 20 years old and want to retire when you turn 65. You expect...
You just turned 20 years old and want to retire when you turn 65. You expect to live for 25 years after retirement and want to withdraw $100,000 per year in retirement, starting on your 65th birthday. You expect to earn a return of 6% on your investments every year. What is the present value (as of your 65th birthday) of the withdrawals you expect to make? How much money should you save each year if you make the first...
You just turned 25 years old and want to retire when you turn 65. You expect...
You just turned 25 years old and want to retire when you turn 65. You expect to withdraw $90,000 per year for 25 years during retirement, starting first withdrawal one year after your 65th birthday. You expect to earn a return of 8% on your investments every year. part 1 How much retirement saving do you need to have by 65th birthday to support the withdrawals in the next 25 years? Or the same question can be asked differently, what...
You turned 35 today and have begun to think about saving for retirement. You anticipate that...
You turned 35 today and have begun to think about saving for retirement. You anticipate that you will retire at age 67 (on your birthday), and will need $120,000 a year for 20 years, with the first withdrawal occurring from the retirement account occurring on your 67th birthday, and the last withdrawal occurring on your 86th birthday. a) If you begin to make monthly payments into your retirement account today (on your 35th birthday), with the last payment into the...
10. You are 29 years old and decide to start saving on your retirement. You plan...
10. You are 29 years old and decide to start saving on your retirement. You plan to save $6,000 at the end of each year (so the first deposit will be one year from now) and make the last deposit when you retire at age 65. Suppose you earn 6% per year on your retirement savings. How much will you have saved for retirement at the age of 65? 11. A rich relative has bequeathed you with a growing perpetuity....
You are 30 years old and decide to start saving for your retirement. You plan to...
You are 30 years old and decide to start saving for your retirement. You plan to save $ 5000 at the end of each year​ (so the first deposit will be one year from​ now), and will make the last deposit when you retire at age 65 Suppose you earn 11 % per year on your retirement savings. a. How much will you have saved for​ retirement? b. How much will you have saved if you wait until age 39...
You are 26 years old and decide to start saving for your retirement. You plan to...
You are 26 years old and decide to start saving for your retirement. You plan to save $6,000 at the end of each year (so the first deposit will be one year from now), and will make the last deposit when you retire at age 65. Suppose you earn 6% per year on your retirement savings, how much will you have saved for retirement right at age 65? (Round to the nearest dollar.)
You just decided to begin saving for retirement. You will make deposits of $1,000 per month...
You just decided to begin saving for retirement. You will make deposits of $1,000 per month into a retirement account that earns 8.00% p.a. The first deposit is made today and the last deposit will be made when you retire exactly 30 years from today. The day you retire you will buy an RV for $240,000. You will begin to make withdrawals from the account the first month after you retire. If you plan to live an addition 25 years,...
Your client is 34 years old. She wants to begin saving for retirement, with the first...
Your client is 34 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $2,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. If she follows your advice, how much money will she have at 65? Round your answer to the nearest cent. $   How much will she have at...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT