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You are planning for retirement. First, you would like to be able to retire 3 0 years from now with a retirement income stream of
You are planning for retirement. First, you would like to be able to retire years from now with a retirement income stream of $ per year for years, wich the first perment received years from now exacty one year after your retitement Second, you would like to leave an inheritance of $ to your children at your death, which we will assume takes place at the end of years of withdrawals. To meet these goals, you will deposit some of your income inso a savings account each year until retirement. You plan on growing the amount you deposit at a constant rate of per year until retirement. Your first deposit will be at the end of this year. Assume that the EAR of and that you do not have any starting savings. A Compute the amount that you will require in your account at your retirement date end of year to meet your retirement goals. B Determine how much money you must deposit at the end of the first year as part of your
planned contributions until retirement to exactlv meet vour retirement goals C Now suppose that you will receive a onetime inheritance of $ ten years from
now at the end of year Given this additional money in your savings account, how
much could vou spend each ver in retirement? Assume the other parameters of the
problem retirement age, savings plan, end date, inheritance remain the same as in parts
AandB.
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