Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please provide formulas used in excel. thank you for your help Jim Nasium is age 40 and plans to retire in 30 years (at age
Please provide formulas used in excel. thank you for your help
Jim Nasium is age 40 and plans to retire in 30 years (at age 70). He has retirement savings in a mutual fund account, which has a current balance of $40,000 (Jim does not plan to add any additional money to this account). Also, Jim opened a 401K retirement account with his new employer and will contribute $15,000 per year into his 401K until retirement.
- If Jims mutual fund account grows at an annual rate of 6.0% how much money will Jim have in his mutual fund account at age 70? (6 points)
- If Jims 401K account grows at an annual rate of 6.0% per year, how much money will Jim have in his 401K account at age 70? (6 points)
- What is the total investment balance of Jims retirement account at the age of 70? (6 points)
- At retirement, Jim plans take the investment balance from his mutual fund account and the balance from his 401K account and combine them into an IRA account. To minimize risk, his IRA account will invest in more conservative securities. As a result, Jim anticipates his annual IRA returns to be about 5.0% during retirement. While in retirement, Jim plans to withdraw $100,000 per year from his IRA account over the next 20 years. Is this possible? Explain why or why not? (6 points)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started