fast asanment

1. How old are you now? At what age do you hope to retire? These questions are really about answering: How many years do you have until you retire?
2. Based on how you want to live in retirement and any other sources of retirement income you have available, how much money do you think you will need to draw from this savings account each year during retirement?
3. You are about to set up a new retirement savings account that earns interest at a 3.9% annual interest rate (APR). You want to make monthly contributions to that account from now until you retire. The goal is to save enough money so that you will be able to withdraw the money you need each month without depleting your principal (in reality, you will probably deplete your principal gradually). How much money do you need to contribute to the account each month?

the answer of the fast assignment

I am 35-year-old. I want to retire at the age of 65. I have thirty years remaining to retire.

after retirement, I want to enjoy life in the same way as I did in my working days. Therefore, after retirement, my living cost would not change. Each year after retirement, I want to be able to withdraw $100,000 per year and live without any worries.

Constant APR is 3.9%

In order to be able to draw $100,000 in each year, my retirement account balance must be

=100,000/0.039

=

Hence my monthly deposit should be:

=2564102.56

=2564102.56

=2564102.56

=2564102.56

=2564102.56

= $3761

the assignment the I need help

The problem you must solve is:

1. Consider the savings plan you developed for yourself in the discussion board. How much did you determine you will need to save each month? You do not need to report the calculations again, but simply restate your conclusion.

2. With the savings plan you developed in the discussion, the monthly payments might be difficult to maintain or to pay at all. Suppose you decide to wait 4 more years until you retire. What are your monthly payments with this plan?

3. Now, suppose you can find an account that earns 4.2% interest instead. How does that change your monthly payments? (You choose how long until you retire in this question).

4. Interpret your calculated results and state some relevant conclusions.