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AutoSum Recently Financial Edgka Insert Time Reference Trig Used Function Function Library C16 F E B 3 trving to decide how much to save for retirement. Assume you $5000 per year with the first investment made one year from 10% per year on your investments and you plan to retire in 43 years, immediately after making you last $5000 You are plan to save now. You think you can earn investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $5000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same etirement saving, how much would that lump If you hope to live for 20 years in retirement, how much can you withdraw Sum need to be? c. every year in retirement (starting will just exhaust your savings with the 20th withdrawal (assume your savings one year after retirement) so that you will continue to earn 10% in retirement)? d. If, instead, you decide to withdraw $300,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it take pntil vou e. Assuming the most you can afford to save is $1000 per vear, but you want to retire with $1 million in vour investment account. how high of a return do you need to earn on your investments? (Use trial-and-error, a financial calculator: solve for the interest rate, or Excel: function RATE) 10 Annual Savings Investment Return Retirement in Retirement 11 $5.000.00 10.0% 13 43 14 20 16 a. Account Value b Todays Lomp Sum Eir p 23 p24 Read Type here to search Used ion Function Library fox X G F D a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $5000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same etirement saving, how much would that lump sum need to be? If you hope to live for 20 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 20th withdrawal (assume your savings will continue to earn 10% in retirement)? d. If, instead, you decide to withdraw $300,000 per year in retirement (again F A 1: C. with the first withdrawal one year after retiring), how many years will it take until you Assuming the most you can afford to save is $1000 per year, but you want to retire with $1 million in your investment account, how hizh of a return do you need to earn on your investments? (Use trial-and-error, a financial calculator: solve for the interest rate, or Excel: function RATE) e. 10 Annual Savings $5,000.00 11 12 Investment Return 10.0% Retirement in 13 43 14 Retirement 20 15 a. Account Value b. Todays Lump Sum Retirement Annual Withdrawal d. ears of ratirement e. Rate required 2 22 23 Read
