Question
using a FINANCIAL CALCULATOR 11 Your Auntie Ivanka is 65 and has just retired. She has savings of $250,000. She needs it to last for
using a FINANCIAL CALCULATOR 11 Your Auntie Ivanka is 65 and has just retired. She has savings of $250,000. She needs it to last for 30 years (everyone in your family mysteriously dies at exactly age 95). If you can achieve a 5% return, each and every year, how much can Ivanka spend each year such that at her death the money is completely used up? 12 You have taken a job out of UCCS. Your new employer, Globo Gym, offers a retirement plan with two choices. Option "A", you earn 2% every year. Or, option "B": through their partnership with a local hedge fund, you appear to earn twice that! The hedge fund will earn +7% the first year and -3% the second year, always. This is the pattern: +7% then - 3%. If you invest $100,000, for 40 years, what will be the ending wealth of option A? Of option B?
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