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You are trying to decide how much to save for retirement. Assume you plan to save $ 8 comma 0 0 0 per year with
You are trying to decide how much to save for retirement. Assume you plan to save $ comma per year with the first investment made one year from now. You think you can earn per year on your investments and you plan to retire inyears immediately after making your last $ comma investment.
a How much will you have in your retirement account on the day you retire?
b If instead of investing $ comma per year, you wanted to make one lumpsum 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 years in retirement, how much can you withdraw every year in retirementstarting one year after retirement so that you will just exhaust your savings with the th withdrawalassume your savings will continue to earn in retirement
d If instead, you decide to withdraw $ comma per year in retirementagain 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 $ comma per year, but you want to retire with $ comma comma in your investment account, how high of a return do you need to earn on your investments?
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