Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Annual mean is 79520 a. According to retirement-plan provider Fidelity Investments, a good rule of thumb is to have 10 times your final salary in

Annual mean is 79520 a. According to retirement-plan provider Fidelity Investments, a good rule of thumb is to have 10 times your final salary in savings if you want to retire by age 67 (we will replace final salary by mean salary). What is 10 times the mean salary that you wrote down in part a. ? Hint: Literally multiply the number in part a. by 10. b. If you work for 40 years and make monthly deposits into a retirement account that earns interest at the rate of 4.8%/year compounded monthly, what should the amount of each of your deposits be so that the balance after 40 years can be the number from part a. ? c. Based on your dream job's mean annual salary, are the monthly payments that you found in part b. feasible ? Support your answer with numbers !

please show steps

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions