Question
Assume that you have saved $1,500,000 in your retirement account when you reach age 65 and retire. Assume you are 22 years old. a. What
Assume that you have saved $1,500,000 in your retirement account when you reach age 65 and retire. Assume you are 22 years old.
a. What is the interest rate that you believe is appropriate to use for compounding your savings after you retire? Why is this figure different if the answer is 2.7%?
b. How many years will you plan to withdraw funds in retirement? (Justify your answer.)
c. What is the future value you will use in this annuity calculation? (Justify your answer.)
d. Using your assumption from Part A, how much money can you spend each year?
PLEASE ANSWER IN DETAIL
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
10th Edition
1260013820, 978-1260013825
