Question

Happy​ birthday! You are 30 years old today. You want to retire at age 60. You want to have

​$1,800,000 at retirement. ​ Realistically, you know that the most that you can save from your 31st birthday until your 50th is ​$5,500 per year​ (you only save on your​ birthdays!). How much do you have to save each year from your 51st to your 60th birthday in order to achieve your retirement goal if you can earn 6​% on your​ savings?

How much do you have to save each year from your 51st to your 60th birthday in order to achieve your retirement​ goal?

(Round to the nearest​ cent.)

You are 40 years old and want to retire at age 70. Each​ year, starting one year from​ now, you will deposit an equal amount into an investment account that pays 3.5​% interest. The last deposit will be on your 70th birthday. On your 70th birthday you will switch the accumulated savings into a safer bank account that pays only 3.8​% interest. You will withdraw your annual income of

​$120,000 at the end of that year​ (on your 71st ​birthday) and each subsequent year until your

90th birthday. On that birthday you want to give ​$400,000 to your children. How much do you have to save each year to make this retirement plan​ happen?  

How much do you have to save per year during your working years in order to achieve your retirement​ goal?

​(Round to the nearest​ cent.)

You are trying to calculate how much money you should have at retirement. On your

59th birthday you will retire and immediately make your first withdrawal of

​$25,000.00. You plan to make 6 such withdrawals each year. You plan to continue withdrawing at that level and frequency until you are 73 years old. ​ (Assume beginning of period withdrawals with the first withdrawal on your retirement date and no withdrawal on your final​ birthday.) During retirement your savings will earn only 3.8​% per annum. How much do you have to have saved at retirement to fund these planned​ withdrawals?  

How much do you have to have saved at retirement to fund these planned​ withdrawals?

(Round to the nearest​ cent.)

Answer 1

1)