Question

You turn 35 today, and you plan to save $2,000 each month for retirement, with the...

You turn 35 today, and you plan to save $2,000 each month for retirement, with the first deposit made at the end of this month. You plan to retire 30 years from today, when you turn 65, but you're not sure how long you can expect to live after retirement, so you want the payments to go on forever. Under these assumptions, how much can you spend each month after you retire? Your first withdrawal will be made at the end of the first month of retirement. You will invest in a mutual fund that's expected to provide a return of 4.5% per year, compounded monthly throughout your life.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

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
Your sister turned 35 today, and she is planning to save $30,000 per year for retirement,...
Your sister turned 35 today, and she is planning to save $30,000 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that's expected to provide a return of 7.5% per year. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend each year after...
Your sister turned 35 today, and she is planning to save $40,000 per year for retirement,...
Your sister turned 35 today, and she is planning to save $40,000 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that's expected to provide a return of 7.5% per year. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend each year after...
Mrs. X turned 45 today, and she is planning to save $17,000 per year for retirement,...
Mrs. X turned 45 today, and she is planning to save $17,000 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that's expected to provide a return of 5.5% per year. She plans to retire 20 years from today, when she turns 65, and she expects to live for 20 years after retirement, to age 85. Under these assumptions, how much can she spend each year after...
Your older brother turned 35 today, and he is planning to save $20,000 per year for...
Your older brother turned 35 today, and he is planning to save $20,000 per year for retirement, with the first deposit to be made one year from today. He will invest in a mutual fund that's expected to provide a return of 7.5% per year. He plans to retire 30 years from today, when he turns 65, and he expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can he spend each year...
Your sister turned 35 today, and she is planning to save $7,500 per year for retirement,...
Your sister turned 35 today, and she is planning to save $7,500 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that will provide a return of 8.0% per year. She plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can she spend in each year after...
Ashley turned 30 today, and she is planning to save $3,000 per year for retirement, with...
Ashley turned 30 today, and she is planning to save $3,000 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund, which she expects to provide a return of 8.20% per year throughout her lifetime. She plans to retire 35 years from today, when she turns 65, and she expects to live for 30 years after retirement, to age 95. Under these assumptions, how much can she spend...
1) Keenan Industries has a bond outstanding with an 8.25% coupon, payable semiannually, and a $1,000...
1) Keenan Industries has a bond outstanding with an 8.25% coupon, payable semiannually, and a $1,000 par value. The bond's dollar price is $1,066.00 and the bond is callable at 104. The bond's yield to call is 7.41 percent. When can the bond be called (round to the nearest whole year)? 2) You turn 35 today, and you plan to save $2,000 each month for retirement, with the first deposit made at the end of this month. You plan to...
You want to buy a condo 5 years from now, and you plan to save $1,500...
You want to buy a condo 5 years from now, and you plan to save $1,500 per year, beginning one year from today. You will deposit the money in an account that pays 4% interest. How much will you have just after you make the 5th deposit, 5 years from now? (Round final answer to 2 decimal places. Omit the "$" sign in your response.) Your sister turned 45 today, and she is planning to save $4800 per year for...
You are trying to decide how much to save for retirement. Assume you plan to save...
You are trying to decide how much to save for retirement. Assume you plan to save $ 5,500 per year with the first investment made one year from now. You think you can earn 12.0​% per year on your investments and you plan to retire in 38 ​years, immediately after making your last 5,500 investment. a. How much will you have in your retirement account on the day you​ retire? b.​ If, instead of investing $5,500 per​ year, you wanted...
You just celebrated your 40th birthday. You plan to retire when you turn 65. Today you...
You just celebrated your 40th birthday. You plan to retire when you turn 65. Today you have $105,736.62 accumulated in your retirement plan and plan to continue adding money each month to your retirement plan for exactly 25 years, starting one month from now. When you retire you will receive a $40,000 retirement bonus from your employer and will immediately deposit the money into your retirement plan. You will then use the accumulated funds to purchase an annuity that will...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT