Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A. If you deposited the following amount per month (letters in your last name X s80) from your paycheck from the time you graduate from
A. If you deposited the following amount per month (letters in your last name X s80) from your paycheck from the time you graduate from school until you retire (at age 73) and your employer matched your contribution (i.e. he/she deposited the same amount to your retirement account), how much wealth would you have accumulated? Be sure to include your age when you graduate). The annual interest rate you will earn should be = letters in your first name X 1.15%. B. If you waited for 5 years after graduation to begin this retirement plan, what would your balance be at retirement? Based on your final answers to A above, what would your retirement income be once you retired if you c. a. earned 5.5% and only lived off the earnings (did not draw down the principle- every month you took out the interest and left the initial amount to earn the same amount of interest-think simple interest) b, earned 5.5% and created an annuity to last until you were 90 years old (this means that by age 90 your balance should be equal to zero) D. Write at least 2 paragraphs on the costs and benefits (risks and rewards) of each of the plans outlined in number C
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started