Question
Suppose you wish to retire 35 years from today. You determined that you will need $250,000 per year after you retire, with the first retirement
Suppose you wish to retire 35 years from today. You determined that you will need $250,000 per year after you retire, with the first retirement funds withdrawn one year from the day you retire and that you will need to make 28 such withdrawals. Assuming that you can earn 5% per year on your retirement funds. PLEASE SHOW THESE ANSWERS IN EXCEL
a) How much must you deposit in an account today (lump sum), so that you may have enough funds for retirement?
b) Rework (a) assuming you can earn 5% interest until you retire then will earn only 4% thereafter
c) Rework (a) assuming you want the 1st withdrawal to be $250,000 one year after you retire and then grow at 2% after that. (5% interest. Total of 28 withdrawals)
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