Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

( ( i already did number one i need help with 2 , 3 , 4 ) ) Estimate Nest EBG: Assuming a 3 %

(( i already did number one i need help with 2,3,4))
Estimate Nest EBG:
Assuming a 3% interest rate, use the Payout Annulty formula to determine your required nest eg8(amount needed at retirement) to be able to withdraw $2500? month for 20 years.
you need $450,777.29 in your account before you retire.
II. Calculate Investment Requirements:
You have 40 years until you can retire and have found an annuity paying 3% per month. How much will you need to deposit each month for the next 40 years to have your required nest egg (part I abovel?
III. Interest:
Determine the amount of your nest egg that is earned interest.
IV. Cost of postponing:
a) If you decided to put off investing for 10 years, how much would you have after 30 years of investing, assuming you made the same investment calculated in part I?
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Finance questions