Question
By the end of each year, you contribute an equal amount of $3,300 per year to your retirement fund portfolio, which earns an annual nominal
By the end of each year, you contribute an equal amount of $3,300 per year to your retirement fund portfolio, which earns an annual nominal rturn of 11.25% averagely in the long term. The annual contribution continues for 36 years until you retire.
(a) ignoring the annual inflation. by the time of your retirment, how much nominal money value would you have in your portfolio.
(b) ignorning the annual inflation. For your post retirment life (which would last another 28 years) by the end of every year you withdraw and spend an equal amout of annuity payment from your retirement fund account. what should be the nominalannual payment you withdra if you do not plan to leave any money to your heirs.
(C) this time considering the long term annual infation aveerages 3.05%. by yourretirement, how much real money (at deflated purchase power) will you actually have in the account? How much equal amount should you witdraw and spend by th end of each year provided you wont leave any money to your heirs.
(d) considering long term annual inflation of 3.05%. how much money will you have in the account. how much equal amount should you or your heirs withdraw and spend byt th end of th year, provided that you plan to allow both your and your heirs to benefit from this fund, generations infinietly.
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