Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help! thank you You are planning for a very early retirement. You would like to retire at age 40 and have enough money

image text in transcribed I need help! thank you
You are planning for a very early retirement. You would like to retire at age 40 and have enough money saved be able to draw $245,000 per year for the next 30 years (based on family history, you think you'll live to age 7 You plan to save for retirement by making 10 equal annual installments (from age 30 to age 40) into a fairly ris investment fund that you expect will earn 12% per year. You will leave the money in this fund until it is complete depleted when you are 70 years old. (Click the icon to view the present value annuity table.) (Click the icon to view the future value annu table.) Click the icon to view the present value table.) (Click the icon to view the future value table.) To make your plan work answer the following questions: (Click the icon to view the questions.) 1. How much money must you accumulate by retirement? (Hint: Find the present value of the $245,000 withdrawals.) Calculate the present value to find out how much money must be accumulated by retirement. (Round your answer to the nearest whole dollar. The present value is 2. How does this amount compare to the total amount you will draw out of the investment during retirement? How can these numbers be so different? Over the course of your retirement you will be withdrawing U hu RR AN Lanhe di nuo Choose from any list or enter any number in the input fields and then continue to the next

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

Operational Auditing

Authors: David G Komatz

1st Edition

B09K24NM14, 979-8751454357

More Books

Students also viewed these Accounting questions

Question

What are the duties of the agent?

Answered: 1 week ago