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1. Consider the following information: You will work for 45 years and, then, retire. You will live for 30 years after you retire. You estimate
1. Consider the following information: You will work for 45 years and, then, retire. You will live for 30 years after you retire. You estimate that you will need $18,000 per month through your retirement years. You expect to earn 12% on your retirement fund during your working years and 6% after you retire. You estimate that your salary will grow at an average annual rate of 3.0% and inflation will average 2.0% during your retirement years. a. If you save $300.00 at the end of your first month of work, how much will you have accumulated at the end of 45 years? b. Given the amount calculated in I., how much can you withdraw at the end of the first month after you retire? c. Given the amount calculated in I., how much can you withdraw at the end of the first month if you wish to leave an inheritance of $500,000 after you die? 1. Consider the following information: You will work for 45 years and, then, retire. You will live for 30 years after you retire. You estimate that you will need $18,000 per month through your retirement years. You expect to earn 12% on your retirement fund during your working years and 6% after you retire. You estimate that your salary will grow at an average annual rate of 3.0% and inflation will average 2.0% during your retirement years. a. If you save $300.00 at the end of your first month of work, how much will you have accumulated at the end of 45 years? b. Given the amount calculated in I., how much can you withdraw at the end of the first month after you retire? c. Given the amount calculated in I., how much can you withdraw at the end of the first month if you wish to leave an inheritance of $500,000 after you die
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