2 Annual Retirement Income Need 3 Years until Retirement 4 Years in Retirement 5 Rate of...
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2 Annual Retirement Income Need 3 Years until Retirement 4 Years in Retirement 5 Rate of Return before Retirement 6 Rate of Return during Retirement 7 Savings Required at Retirement 8 Investment Required Today 9 Annual Investment Required 5 7 V 10 Monthly investment Requiured m 11 Mo 8 19 20 21 22 12 23 24 13 14 15 16 17 18 19 20 21 22 23 A 24 25 B Retirement Worksheet 26 125,000 40 35 10.00% 6.00% D E F G H This is a multi-step problem 1. you must calculate the amount of money you require the day you retire to fund your anticipated retirement needs of of $125,000 per year for 35 years while earning 6% in retirement. 2. How much would you need to invest today as a single sum to fund your retirement. 3. Once you have calculated the funds requred the day you retire the next step is to calcuate annual payment required to reach your goal To calculate the monthly payment we must adjust both the interest rate and the number of compounding periods. adjustments yearly rate /12 and number of years * times per year 2 Annual Retirement Income Need 3 Years until Retirement 4 Years in Retirement 5 Rate of Return before Retirement 6 Rate of Return during Retirement 7 Savings Required at Retirement 8 Investment Required Today 9 Annual Investment Required 5 7 V 10 Monthly investment Requiured m 11 Mo 8 19 20 21 22 12 23 24 13 14 15 16 17 18 19 20 21 22 23 A 24 25 B Retirement Worksheet 26 125,000 40 35 10.00% 6.00% D E F G H This is a multi-step problem 1. you must calculate the amount of money you require the day you retire to fund your anticipated retirement needs of of $125,000 per year for 35 years while earning 6% in retirement. 2. How much would you need to invest today as a single sum to fund your retirement. 3. Once you have calculated the funds requred the day you retire the next step is to calcuate annual payment required to reach your goal To calculate the monthly payment we must adjust both the interest rate and the number of compounding periods. adjustments yearly rate /12 and number of years * times per year
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SOLUTION Step 1 Calculate the amount of money required the day you retire to fund your anticipated retirement needs of 125000 per year for 35 years wh... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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