Happy birthday! You are 30 years old today. You want to retire at age 60. You want to have

$1,800,000 at retirement. Realistically, you know that the most that you can save from your 31st birthday until your 50th is $5,500 per year (you only save on your birthdays!). How much do you have to save each year from your 51st to your 60th birthday in order to achieve your retirement goal if you can earn 6% on your savings?

How much do you have to save each year from your 51st to your 60th birthday in order to achieve your retirement goal?

(Round to the nearest cent.)

You are 40 years old and want to retire at age 70. Each year, starting one year from now, you will deposit an equal amount into an investment account that pays 3.5% interest. The last deposit will be on your 70th birthday. On your 70th birthday you will switch the accumulated savings into a safer bank account that pays only 3.8% interest. You will withdraw your annual income of

$120,000 at the end of that year (on your 71st birthday) and each subsequent year until your

90th birthday. On that birthday you want to give $400,000 to your children. How much do you have to save each year to make this retirement plan happen?

How much do you have to save per year during your working years in order to achieve your retirement goal?

(Round to the nearest cent.)

You are trying to calculate how much money you should have at retirement. On your

59th birthday you will retire and immediately make your first withdrawal of

$25,000.00. You plan to make 6 such withdrawals each year. You plan to continue withdrawing at that level and frequency until you are 73 years old. (Assume beginning of period withdrawals with the first withdrawal on your retirement date and no withdrawal on your final birthday.) During retirement your savings will earn only 3.8% per annum. How much do you have to have saved at retirement to fund these planned withdrawals?

How much do you have to have saved at retirement to fund these planned withdrawals?

(Round to the nearest cent.)