You are trying to decide how much to save for retirement. Assume you plan to save

$ 6 comma 500$6,500

per year with the first investment made one year from now. You think you can earn

11.011.0%

per year on your investments and you plan to retire in

3232

years, immediately after making your last

$ 6 comma 500$6,500

investment.

a. How much will you have in your retirement account on the day you retire?

b. If, instead of investing

$ 6 comma 500$6,500

per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be?

c. If you hope to live for

2626

years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the

2626th

withdrawal (assume your savings will continue to earn

11.011.0%

in retirement)?

d. If, instead, you decide to withdraw

$ 322 comma 000$322,000

per year in retirement (again with the first withdrawal one year after retiring), how many years will it take until you exhaust your savings? (Use trial-and-error, a financial calculator: solve for "N", or Excel: function NPER)

e. Assuming the most you can afford to save is

$ 1 comma 300$1,300

per year, but you want to retire with

$ 1 comma 000 comma 000$1,000,000

in your investment account, how high of a return do you need to earn on your investments? (Use trial-and-error, a financial calculator: solve for the interest rate, or Excel: function RATE)