Question
You are 20 years old and you want to save in an individual retirement account to receive $100,000 per year after you retire at the
You are 20 years old and you want to save in an individual retirement account to receive $100,000 per year after you retire at the age of 65. If the expected rate of return on individual retirement account portfolios is
about 10% per year in the foreseeable future and your expected longevity is 80 years,
a. How much should you save per year?
b. If you die at 75, how much will your heirs receive?
Step by Step Solution
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Answer a Use PV function to find the retirement fund ...
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Engineering Economy
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
15th edition
132554909, 978-0132554909
