Question
1. Assume that when you retire, you want to live on $60,000 every year. Assuming that you will have your money in a relatively safe
1. Assume that when you retire, you want to live on $60,000 every year. Assuming that you will have your money in a relatively safe investment that returns 4.5% annually while you are retired. How much money do you need to have the day that you retire? (note: there are 2 ways to solve this, either way will get you full points)
1-a. Using your answer to question 1. Assuming that you can make an average of 9% returns until you retire, and that you plan to retire in 45 years, how much money do you need to invest, either monthly or annually, to reach your goal in question 5? (Note: you can solve this using monthly payments or annual payments, if you do monthly.
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