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b) You are about the retire at age 65 and expect to achieve a 3.5% return on your invested capital over the full length of
b) You are about the retire at age 65 and expect to achieve a 3.5% return on your invested capital over the full length of your retirement. What level of initial investment capital do you require to ensure a $75,000 per year income until age 95 when your capital will be exhausted? If you start your retirement with $2.5 million dollars, plan to have income of $90,000 per year and expect to achieve a 2.5% return on invested capital, how many years will pass before your funds are exhausted? How does your answer change if the expected return is 3.75% ? Derive the functional relationship between changes in interest rates and the time that will pass before funds will be exhausted. b) You are about the retire at age 65 and expect to achieve a 3.5% return on your invested capital over the full length of your retirement. What level of initial investment capital do you require to ensure a $75,000 per year income until age 95 when your capital will be exhausted? If you start your retirement with $2.5 million dollars, plan to have income of $90,000 per year and expect to achieve a 2.5% return on invested capital, how many years will pass before your funds are exhausted? How does your answer change if the expected return is 3.75% ? Derive the functional relationship between changes in interest rates and the time that will pass before funds will be exhausted
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