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years old. To make the plan work, you must accumulate this amount by retirement Requirement 2 . How does this amount compare to the total
years old.
To make the plan work, you must accumulate this amount by retirement
Requirement How does this amount compare to the total amount you will withdraw from the investment during retirement? How can these numbers be so different?
Over the course of your retirement you will be withdrawing
However, by age you only need to have invested
These numbers are different because:
B You need to have the same amount accumulated as you will withdraw because you will not earn further interest on your investment when you reach retirement.
D None of the above
Requirements
How much money must you accumulate by retirement to make your plan work? Hint: Find
the present value of the $ withdrawals.
How does this amount compare to the total amount you will withdraw from the investment
during retirement? How can these numbers be so different?
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