Question
The following questions assume that you will retire in 40 years. Round your answers to the nearest dollar and clearly indicate a, b, c in
The following questions assume that you will retire in 40 years. Round your answers to the nearest dollar and clearly indicate a, b, c in your answers. a. You currently have $200,000 in an account earning 8.0 percent per year over the next 40 years, how much will you have in the account after 40 years? b. In a separate retirement account, you currently have $200,000 and plan to add $12,000 per year at the end of each of the next 40 years. If the investment account earns a return of 6 percent per year over the next 40 years, how much will you have in this account at the end of the 40 years? c. When you retire, you will transfer the sum of the balances (your answers to part a and b) of your two investment funds into a single retirement account that will earn 4.25%. How much can you withdraw at the end of each year if you will live for another 25 years?
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