Question
1. What is the IRR? Show calculations 2. NPV of total retirement payments assuming 4% inflation (seek an annual pre-tax retirement income of $150,000) ?
1. What is the IRR? Show calculations
2. NPV of total retirement payments assuming 4% inflation (seek an annual pre-tax retirement income of $150,000) ? show calculations
Pension Plan 1 = 569,188 ( 1 + 0.09) ^ 20 = $3,189,963.36
Pension Plan 2 = 697,352 ( 1 + 0.09) ^ 20 = $3,908,247
IRA Rollover = 130,156 ( 1 + 0.09) ^ 20 = $729,488
IRA #1 = 29,300 ( 1 + 0.09) ^ 20 = $164,209
IRA #2 = 34,700 ( 1 + 0.09) ^ 20 = $194,473
Savings = 50,950 ( 1 + 0.03) ^ 20 = $92,021
Total Value in 20 years = $8,278,401.36
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Public Finance And Public Policy
Authors: Jonathan Gruber
6th Edition
1319105254, 9781319105259
