Question

You are 23 years old and need to have $1,160,000 in savings before you retire at age 72. You estimate you will receive an annual return of 7% on investments.

**a.** How much do you need to put into retirement
savings on an annual basis? (Input your answer as a positive value.
Round your answer to 2 decimal places.)

**b.** How much do you need to put into retirement
savings on an annual basis if you get an annual return of 9%?
(Input your answer as a positive value. Round your answer to 2
decimal places.)

Answer #1

Suppose you have determined that you want to have retirement
savings of $5,000,000 when you retire at age 65, 42 years after you
graduate, at age 23. Looking at the long history of the market, you
are confident that you can earn at 10% per annum on a
well-diversified equity portfolio. a) Calculate much would you have
to save annually at the end of each year for the next 42 years to
reach your $5,000,000 goal assuming a 10% annual...

Suppose you have determined that you want to have retirement
savings of $5,000,000 when you retire at age 65, 42 years after you
graduate, at age 23. Looking at the long history of the market, you
are confident that you can earn at 10% per annum on a
well-diversified equity portfolio.
a) Calculate much would you have to save annually at the end of
each year for the next 42 years to reach your $5,000,000 goal
assuming a 10% annual...

You have a couple who are 31 years old, and want to retire at
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You retire at age 60 and expect to live another 23 years. On the
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Annual Savings =
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10. You are 30 years old and planning to retire at age 62. You
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