Question

Suppose you are 30 years old and want to retire at the age of
age 70 and expect to live another 20 years. On the day you retire,
you want to have $1,000,000 in your retirement savings
account.

i. If you invest monthly starting one month from today and your
investment earns 6.0 percent per year, How much money do you need
to invest every month until you retire?

ii. Now you’re retired with $1,000,000 and you have 20 more years.
You are conservatively expecting to earn 5% on your money during
your retirement. Life is uncertain. So at the end of
20^{th} year of retirement you still want to have $100,000
just in case you will live more. How much can you withdraw from
your retirement savings each month if you plan to have $100,000 at
the end of your 20^{th} year after your retirement?

Answer #1

10. You are 30 years old and planning to retire at age 62. You
want to plan your finances for living 35 years past age 62 and then
die dead broke. You determine that you will need $3000 per month
for the 35 years. At age 62, you plan to go live in the tropics on
the beach and live on coconuts, rum and fishing. You need to
conclude your retirement savings at age 55 because all your spare
money...

You are 30 years old today. You want to retire at the age of 60.
You expect to live until age 85. You would like to have a monthly
income of $13,000 per month in retirement. How much do you have to
save per month during your working years in order to achieve your
retirement goal? Assume end of period payments. Assume an annual
interest rate of 3.5% in retirement and 5% during your working
life. How much do you...

You have a couple who are 31 years old, and want to retire at
the age of 67. Knowing that, the couple has a combined annual
income of $95,000 today.
1. If the couple want to procrastinate their retirement savings
until they reach 35, and if retirement savings will grow at a rate
of 8%, how much would they need to save per year, at the end of
every year, in order to achieve the $2 million target by the...

Suppose you want to retire when you reach age 70, at that time
you want to have $1,000,000 accumulated in your retirement account.
Now your 25 years old, starting today, how much you have to save
equally, at the beginning of each year, in order to reach your
retirement goal if the account earns 5% annually compounded
interest?

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...

QUESTION 9
Suppose you plan to retire at age 70, and you want to be able to
withdraw an amount of $83,000 per year on each birthday from age 70
to age 100 (a total of 31 withdrawals). If the account which
contains your savings earns 5.4% per year simple interest, how much
money needs to be in the account by the time you reach your 70th
birthday? (Answer to the nearest dollar.)
Hint: This can be solved as a...

You are 35 years old today and want to plan for retirement at
age 65. You want to set aside an equal amount every year from now
to retirement. You expect to live to age 85 and want to withdraw a
fixed amount each year during retirement that at age 65 will have
the same purchasing power as $83,697 has today. You plan on
withdrawing the money starting the day you retire. You have not
saved any money for retirement....

You are 43 years old today and want to plan for retirement at
age 65. You want to set aside an equal amount every year from now
to retirement. You expect to live to age 95 and want to withdraw a
fixed amount each year during retirement that at age 65 will have
the same purchasing power as $98,093 has today. You plan on
withdrawing the money starting the day you retire. You have not
saved any money for retirement....

You retire at age 60 and expect to live another 23 years. On the
day you retire, you have $568,900 in your retirement savings
account. You are conservative and expect to earn 5.2% on your money
during your retirement. How much can you withdraw from your
retirement savings each month if you plan to die on the day you
spend your last penny?
i. Write down the discounted cash flow equation.
ii. Solve the equation to find the monthly withdrawal...

Assume you are now 30 years old. You plan to retire when you are
60 years old. You think you will live until you are 85 years old.
a. If the rate of return during your working years (a.k.a. the
"savings period") is 10% and you plan to save $1,000 per year, how
much will you have saved up by retirement age? b. If the rate of
return during your retirement is 7%, how much will you receive as
an...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 5 minutes ago

asked 11 minutes ago

asked 12 minutes ago

asked 15 minutes ago

asked 17 minutes ago

asked 22 minutes ago

asked 32 minutes ago

asked 32 minutes ago

asked 33 minutes ago

asked 39 minutes ago

asked 45 minutes ago