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Age: 24

years until retirement: 20

years in retirement: 55

inflation assumption: 3%

return during savings: 11%

return during retirement: 8%

current income: 35,000

current retirement savings: 5,000

annual contribution to retirement: XXXX

first half of years to retirement: 500

second half of years to retirement: 20,000

Given the above information:

a. How much will your client have on day he/she retires?

Answer is $398,492.15

b. How much will client be able to withdraw each year of retirement if he/she wants equal payments every year and wants to leave nothing to hiers?

Answer is $32,348.78

c. Using the assumed rate of inflation, what is the annual amount drawn the first year, (solution b) worth today?

Answer is $17,910.74

d. How much will client be able to withdraw each year of retirement, if client wants to leave an amount equal to 20% of starting amount on day retires (so 20% of part a), to heirs upon his death which he assumes will be the last day of his projected retirment?

Answer ($32,254.90) How do I get this answer??

e. Now create a worst case scenario for your client. You are now half way to saving fro retirement:

Assume the returns for the first half of the savings period are 2% less than assumed above, and the client only put away half of what was assumed.

How much will the client have to now save per year to save the original amount found in part a, assuming the rate goes back to the assumed return during savings?

Answer ($21,175.55) How do I get this answer??

Need help solving how to get the answers for part (d) and part (e)

(annual contribution to retirement not used)