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You are trying to decide how much to save for retirement. Assume you plan to save $ 6 , 5 0 0 per year with

You are trying to decide how much to save for retirement. Assume you plan to save $6,500 per year with the first investment made one year from now. You think you can earn 7% per year on your
investments and you plan to retire in 40 years, immediately after making your last $6,500 investment.
a. How much will you have in your retirement account on the day you retire?
b. If, instead of investing $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 17 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 17 th
withdrawal (assume your savings will continue to earn 7% in retirement)?
d. If, instead, you decide to withdraw $100,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it take until you exhaust your savings?
e. Assuming the most you can afford to save is $1,300 per year, but you want to retire with $1,000,000.00 in your investment account, how high of a return do you need to earn on
your investments?
a. How much will you have in your retirement account on the day you retire?
The amount in the retirement account in 40 years would be $1,297,628.23.(Round to the nearest cent.)
b. If, instead of investing $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?
You will need to make one lump sum investment today of q(Round to the nearest cent.)
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