Question
C. Linear return model - Lynda, puts her $500,000 into a target date mutual fund. Lynda expects to earn 7.90%, compounded annually, during her retirement
C. Linear return model - Lynda, puts her $500,000 into a target date mutual fund. Lynda expects to earn 7.90%, compounded annually, during her retirement years. Assume her savings go to zero at the end of 20 years.
- What would be Lyndas annual income? Explain your answer. This is a time value of money problem where you need to solve for the annual payment of an ordinary annuity.
- What would be the year one annual withdrawal rate?
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The Limits Of Surveillance And Financial Market Failure Lessons From The Euro-Area Crisis
Authors: K. Shigehara (
1st Edition
1137471468, 1137471476, 9781137471468, 9781137471475
