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You are about to retire at age 65 and expect to achieve a 3.5% return on your invested capital over the full length of your
You are about to retire at age 65 and expect to achieve a 3.5% return on your invested capital over the full length of your retirement. What level of initial investment capital do you require to ensure a $75,000 per year income until age 95 when your capital will be exhausted? If you start your retirement with $2.5 million dollars, plan to have income of $90,000 per year and expect to achieve a 2.5% return on invested capital, how many years will pass before your funds are exhausted? How does your answer change if the expected return is 3.75%? Derive and plot the functional relationship between initial wealth, annual income, interest rates and the time that will pass before funds will be exhausted
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