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1) the time line, 2) inputs to, and 3) output from the financial calculator. 1. Your client is 30 years old, and she wants to
1) the time line, 2) inputs to, and 3) output from the financial calculator.
1. Your client is 30 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $2,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. a. If she follows your advice, how much money would she have at 65? b. If she expects to live for 25 years during retirement if she retires at 65 and her investments continues to earn the same rate, how much could she withdraw at the end of each year during retirement? (note: she will end up with zero in the account at the end of the 25th retirement year)Step by Step Solution
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