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

10.0%

per year on your investments and you plan to retire in

39

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

25

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

25th

withdrawal (assume your savings will continue to earn

10.0%

in retirement)?d. If, instead, you decide to withdraw

$522,000

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

$1,300

per year, but you want to retire with

$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)

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

The amount in the retirement account in

39

years would be

$nothing.

(Round to the nearest cent.)