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Question 17 (2 points) Suppose Professor Kate is in her last 3 years of work and she has no savings to date. Her post-tax annual
Question 17 (2 points) Suppose Professor Kate is in her last 3 years of work and she has no savings to date. Her post-tax annual income is $100000. She wants her consumption to grow at 50% in each of the next three years and add the rest to her new investment portfolio, which has an expected rate of return of 6%. On her retirement, she wants to have $200000 in her portfolio. Which of the following is the amount she can consume in the first year? The answer is 26580.60 The answer is 23845.60 The answer is 24155.10 The answer is 28089.99
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