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a. You are currently 25 and plan to retire at age 65. You think you will need $150,000 per year during your retirement years. You
- a. You are currently 25 and plan to retire at age 65. You think you will need $150,000 per year during your retirement years. You assume that you will live until age 90. You also want to leave $1,000,000 to Wingate University when you die at age 90. You expect to get a 6% rate on your investments. How much do you need to have in your account at retirement?
- If you start saving now at age 25, how much will you need to save each year to meet your goal? If you wait until age 40 to begin saving, how much will you need to save each year? Assume you still earn a 6% rate.
- Your parents have told you they will give you $50,000 for your 30th birthday, which you will put into the account. Your employer will match the exact amount each year you put into the account. If you start saving now at age 25, how much will you need to put into the account each year?
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