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Please show all your work Salary is not given in the problem Actually Salary is $142,000 Axel is 30 years old Axel is looking forward
Please show all your work
Salary is not given in the problem
Actually Salary is $142,000
Axel is 30 years old
Axel is looking forward to retirement and hopes to be able to retire (stop working) when he is 65. His wage replacement ratio is estimated to be 75%. Given Axel's health and family history, a conservative estimate for his life expectancy is 85 years. Axel's Social Security benefit statement indicates that his Social Security retirement benefit (in today's dollars) is $17,000 per year. [Use Steps 1 through 3 of the example on pp. 491-292 of the textbook to find the answer to this question: . What amount of retirement funds will he need at retirement (draw timelines to make sure you are setting BGN to the correct setting (BGN or END*)) in order to maintain his standard of living until age 90? Assume Axel can earn 6% (annual compounding (C/Y=1) on his investments up to and during retirement, and that the rate of inflation over the rest of his life averages 4% per year. Amount of retirement funds ("nest egg") he needs at retirement (beginning of first year of retirement*)=$ Step by Step Solution
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