In wisely planning for your retirement, you invest $12,000 per year for 20 years into a 401-k

Question:

In wisely planning for your retirement, you invest $12,000 per year for 20 years into a 401-k investment account.

(a) How much can you withdraw each year for 10 years, starting 1 year after your last deposit, if you want a real return of 10% per year when the inflation rate averages 2.8% per year?

(b) For a spreadsheet function challenge, write a single-cell function that displays the correct 10-year annual withdrawal amount directly.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

See More Books

Question Posted: Dec 26, 2018 06:52 AM

See More Questions

You have decided to start planning for your retirement by analyzing different retirement plans. The plan offered by IRA Managers requires you to deposit $5,000 at the beginning of each of the next 30...
In planning for your retirement, you expect to save $5000 in year 1, $6000 in year 2, and amounts increasing by $1000 each year through year 20. If your investments earn 10% per year, the amount you...
You are a well-paid engineer with a well-established international corporation. In planning for your retirement, you are optimistic and expect to make an investment of $10,000 in year 1 and increase...
At fiscal year-end December 31, 2015, Shop-World had the following assets and liabilities on its balance sheet (in millions): Current liabilities ............ $9,459 Long-term debt .................
For the year 2017, Dumas Company's gross profit was $96,000; the cost of goods manufactured was $340,000; the beginning inventories of goods in process and finished goods were $28,000 and $45,000,...
Evaluate the following quotation from Forbes: If IBM had been forced to expense [the software development cost of] $785 million, its earnings would have been cut by 72 cents a share. With IBM selling...
Construct and interpret a 95% confidence interval for the mean number of home runs for all players who had a batting average of 0.300.
During the month of November the following transactions occurred. Assignment 1. Record the following transactions in the general journal and post them to the general ledger. 2. Prepare a trial...
Assume You are the Purchasing Manager for Company X and your company Director asked you to prepare a detailed plan for the following. 1. Selection of new suppliers 2. Evaluating the existing...
Consider a system of particles uniformly distributed in space, with a constant particle number density n 0 , and characterized by a velocity distribution function f(v) such that where K 0 is a...
What effect on UCL - LCL does it have if we double the sample size? If we switch from = 1% to = 5%
For a present sum of $750,000, what is the annual worth (in then-current dollars) in years 1 through 5 if the market interest rate is 10% per year and the inflation rate is 5% per year?
The drawing graphs a string on which two rectangular pulses are traveling at a constant speed of 1 cm/s at time t = 0 s. Using the principle of linear superposition, draw the shape of the string at t...
What is the difference between corporate and clinical? How do they differ? Can they both have the same outcome? Include a reference list that supports your stance of no fewer than 3 scholarly...
How do we attain the desire for the freedom to purse one's passions, the desire for economic security and well-being, the desire for hope and progress in one's life utilizing higher-order thinking
Instructions FNCE 625 - Investment Analysis and Management Group Project - Case Study Guideline Introduction: In this group assignment, each team will collaboratively make a comprehensive report and...
21) The EOQ model is solved using calculus but the key intuition is that relevant total costs are minimized when relevant ordering costs equal relevant carrying costs. 22) Safety stock is used as a...
In the long-term, what do you recommend as overall policy in order to reduce or avoid the kinds of PPE shortages that occurred during the different waves of the COVID virus? In simple terms, how...
Headstrong Hardware lost most of its inventory in an electrical fire that destroyed the companys warehouse and retail store in 2024. Fortunately, the accounting records were backed up on the owners...
Refer to the data in QS 10-1. Based on financial considerations alone, should Helix accept this order at the special price? Explain.
Explain how NAICS codes might be helpful in evaluating and understanding business ma r kets. Give an example.
Considering the nature of retail buying, outline the basic ingredients of promotion to retail buyers. Does it make any difference what kinds of products are involved? Are any other factors relevant?
The government market is obviously an extremely large one, yet it is often slighted or even ignored by many firms. Red tape is certainly one reason, but there are others. Discuss the situ a tion and...
Questien It Calraluta bae neark yoe cen atforal to berren
In calculating the net present value of a proposed project, the cash flows of the project should include a.) amortization of goodwill b.) interest expenses paid to bondholders c.) extra working...
If Yolanda's insurance company cancels her fire insurance policy after 204 days, how much of the $682.00 annual premium will she receive as a refund (in $)? (Round you answer to the nearest cent.) $

In wisely planning for your retirement, you invest $12,000 per year for 20 years into a 401-k

Question:

Step by Step Answer:

a i f 010 0028 0100028 01308 1308 per ...View the full answer

Engineering Economy

Students also viewed these Business questions