Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.A woman wants to withdraw $80,000 per year for the next 30 years. Her retirement funds will be invested in assets that are expected to

1.A woman wants to withdraw $80,000 per year for the next 30 years. Her retirement funds will be invested in assets that are expected to earn an annual rate of return of 6%. Assume her first withdraw comes one year after her date of retirement. How much money does she need in her retirement fund on her retirement date.

1b. It is 50 years prior to her retirement date. Starting one year from today, she plans to begin funding her retirement play by investing in assets that are expected to earn an annual rate of 8%. Find the size of the equal annual payments that she needs to make into her account, for the next 50 years, in order to have amassed the dollar amount you found in part a by the day she retires.

2. An interest rate of 3% per year, with compounding monthly interest, on its CD. If you invest $10,000, how many months will it take for your investment to grow to 12,000?

Need the questions answered with finance practices and equations, not on excel. Thank You.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Renewable Energy Finance Powering The Future

Authors: Charles W. Donovan

1st Edition

178326778X, 9781783267781

More Books

Students also viewed these Finance questions

Question

19. SS (y+ y cos x) d 20 In SS y dy dx axy 2/ (+1) 214 dy dx

Answered: 1 week ago