When ROR falls by 1% to 5%, the retirement annuity falls from $192,244 to $149,855 (i.e., by

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When ROR falls by 1% to 5%, the retirement annuity falls from $192,244 to $149,855

(i.e., by 22.45%). To restore this annuity, the savings rate must rise by 4.24 percentage points to 19.24%. With this savings rate, the entire loss of 1% in ROR falls on consumption during the earning years. LO.1

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Essentials Of Investments

ISBN: 9780697789945

8th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jul 26, 2024 02:01 PM

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When ROR falls by 1% to 5%, the retirement annuity falls from $192,244 to $149,855 (i.e., by

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Essentials Of Investments

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