Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I just need help with the last two!! Personal Retirement Problem Create a spreadsheet Calculate the annual deposits that your friend would have to make

I just need help with the last two!!image text in transcribed

Personal Retirement Problem Create a spreadsheet Calculate the annual deposits that your friend would have to make to achieve the following: Your friend would like to draw 75% of her final year's salary level at the beginning of each year for 20 years following her retirement at age 65. You believe she can earn 7% on her investments. She is 25 years old and you believe she will receive average raises of 6% for the next 40 years, i.e., she will get 39 raises before retiring. She currently earns $50,000 per year. nimit What will be her final wage level? How much would she like to receive at the beginning of each retirement year? How much will she need on the day she retires? How much would she need to invest at the end of each year? Note, her last deposit and first withdrawal will take place on the same day under this case. If your friend wanted to make all of her contributions over the first 25 years of her remaining working life, but collect the same amount in each retirement year starting at age 65, how much would she have to invest at the end of each year to achieve the amount needed in question 5? If your friend wanted to make all of her contributions over the last 25 years of her remaining working life, how much would she have to invest at the end of each year? 6

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

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

Recommended Textbook for

Patient Care Audit Criteria

Authors: Jean Gayton Carroll

1st Edition

0870943928, 978-0870943928

More Books

Students also viewed these Accounting questions

Question

What are the functions of top management?

Answered: 1 week ago

Question

Bring out the limitations of planning.

Answered: 1 week ago

Question

Why should a business be socially responsible?

Answered: 1 week ago

Question

Discuss the general principles of management given by Henri Fayol

Answered: 1 week ago