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23 years old, makes around $52k a year. Question 4 (1 point) How much will your annual salary be at approximately age 65? Assume no
23 years old, makes around $52k a year.
Question 4 (1 point) How much will your annual salary be at approximately age 65? Assume no raises other than cost of living (inflation) and inflation is 3%. Question 5 (1 point) How much is 80% of this salary in the future? (Question 4 x 0.80) A/ Question 6 (1 point) Calculate the amount you need at age 65 to retire to receive 80% of Age 65 Salary (what we find for Question 5) at the end of each year for 20 years. You will invest this amount at 4% interest and leave no inheritance. (At Age 65, how much money do you need to receive 80% of your salary for the next 20 years starting at age 66?) A Question 7 (1 point) How much do you need to save per year (at the end of each year) in an investment earning 7% per year now to reach the amount in Question 6 by age 65? Assume you have no money now in the investment. A/ Question 8 (1 point) How much do you need to save per month (at the end of each month) in an investment earning 7% per year now to reach the amount in Question 6 by age 65? Assume you have no money now in the investment. Question 9 (1 point) How much do you need to save per month (at the beginning of each month) in an investment earning 7% per year now to reach the amount in Question 6 by age 65? Assume you have no money now in the investment. A Question 10 (1 point) Calculate the amount you need at age 65 to retire to receive a perpetuity of 80% of Age 65 Salary (Question 5) income per year forever. You will invest this amount at 4% interest and receive your first perpetuity payment at Age 66. A/Step by Step Solution
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