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Over your 40-year working career, you are planning to be diligent in planning for retirement. You...

Over your 40-year working career, you are planning to be diligent in planning for retirement. You estimate that you will start working at age 25, retire at 65, and need $100,000/year to live on in retirement for 25 additional years (until age 90).

8a) Assuming a TVOM of 8%, what do you need to uniformly annually invest to meet this goal over 40 years?

8b) What about if you wait 20 years and start investment at age 45? How much will you now need to invest uniformly to meet your goal?

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SOLVED WITH BA II PLUS CALCULATOR

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