Question
you are saving for retirement. starting this month you will deposit $600 per month into a stock account that earns 9% interest, compounded monthly. In
you are saving for retirement. starting this month you will deposit $600 per month into a stock account that earns 9% interest, compounded monthly. In ten years, you will inhereit 100000 which you will also put in the same account.
a) If you plan to retire in 37 years, how much will you have when you retire?
B)When you retire, you will move your money into a safer account that earns 4% interest per year. If you expect to live off interest in perpetuity, how much will you be able to withdraw each year during retirement?
c)If instead of a perpetuity, you would like to withdrawel your funds as an annuity and you expect to live 30 years past retirement, how much will you be able to withdraw per year?
Thank you so much
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