Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial analysts recommend investing 1 5 % to 2 0 % of your annual income in your retirement fund to reach a replacement rate of

Financial analysts recommend investing 15% to 20% of your annual income in your retirement fund to reach a replacement rate of 70% of your income by age 65. This recommendation increases to almost 30% if you start investing at 45 years old. Mallori Rouse is 27 years old and has started investing $3,800 at the end of each year in her retirement account. How much will her account be worth in 20 years at 8% interest compounded annually? How much will it be worth in 30 years? What about at 40 years? How much will it be worth in 50 years? (Please use the following provided Table 13.1.)
Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Health Care Finance

Authors: William O. Cleverley, Andrew E. Cameron

6th Edition

0763742368, 978-0763742362

More Books

Students also viewed these Finance questions