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PLEASE ANSWER FOR UPVOTE 1. Using the information below, answer the following questions: Annual Retirement Income Need 150,000 Years until Retirement 30 Years in Retirement
PLEASE ANSWER FOR UPVOTE
1. Using the information below, answer the following questions: Annual Retirement Income Need 150,000 Years until Retirement 30 Years in Retirement 35 Expected Inflation Rate 2.50% Rate of Return before Retirement 8.00% Rate of Return during Retirement 5.00% e) To illustrate the importance of the return on your investment, set up a scenario analysis that shows your investment required today, the annual investment required, and the first annual investment required considering savings as graduate annuities. Assume four scenarios where your rate of return before retirement is 5%, 7%, 10%, and 15%. How likely do you think it is that you will be able to earn 10% or 15% per year on your investments? What do these results suggest to you about the importance of financial literacy? 1. Using the information below, answer the following questions: Annual Retirement Income Need 150,000 Years until Retirement 30 Years in Retirement 35 Expected Inflation Rate 2.50% Rate of Return before Retirement 8.00% Rate of Return during Retirement 5.00% e) To illustrate the importance of the return on your investment, set up a scenario analysis that shows your investment required today, the annual investment required, and the first annual investment required considering savings as graduate annuities. Assume four scenarios where your rate of return before retirement is 5%, 7%, 10%, and 15%. How likely do you think it is that you will be able to earn 10% or 15% per year on your investments? What do these results suggest to you about the importance of financial literacyStep by Step Solution
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