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

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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
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You are 30 years old today. You want to retire at the age of 60.
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You have a couple who are 31 years old, and want to retire at
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1. If the couple want to procrastinate their retirement savings
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Happy birthday! You are 30 years old today. You want to retire
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$1,800,000 at retirement. Realistically, you know that the
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Suppose you want to retire when you reach age 70, at that time
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Now your 25 years old, starting today, how much you have to save
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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
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withdrawing the money starting the day you retire. You have not
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age 65. You want to set aside an equal amount every year from now
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You are currently 30 years old. You intend to retire at age
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beginning-of-the-year annuity, with the first payment to be
received on your 60th birthday. You would like to save enough money
over the next 15 years to achieve your objective; that is, you want
to accumulate the necessary funds by your 45th birthday.
A. If you expect your investments to earn 12% per year over
the next...

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