(TVM) Sam retires today at the age of 61 and invests his life savings into an...
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(TVM) Sam retires today at the age of 61 and invests his life savings into an account that is guaranteed to earn 3.84% per year. Sam expects to live to the age of 89, withdraw $0.109min from the account at the end of each year, and leave his heirs $1.915min (this amount will be the account balance at the time of his death). How much is Sam putting in the account today, in $ million? Round to the nearest $0.001 million. E.g., if your answer is $1,234,758, record it as 1.235. (TVM) Sam retires today at the age of 61 and invests his life savings into an account that is guaranteed to earn 3.84% per year. Sam expects to live to the age of 89, withdraw $0.109min from the account at the end of each year, and leave his heirs $1.915min (this amount will be the account balance at the time of his death). How much is Sam putting in the account today, in $ million? Round to the nearest $0.001 million. E.g., if your answer is $1,234,758, record it as 1.235.
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To find out how much Sam needs to put in the account today we can use the present value ... View the full answer
Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0134730363
8th edition
Authors: Arthur J. Keown
Posted Date:
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