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You expect to earn 95 APR on vour savings. To save for retirement, vou will save the following amounts per month: Part (a): Fill in

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You expect to earn 95 APR on vour savings. To save for retirement, vou will save the following amounts per month: Part (a): Fill in the table below to determine the amount of your savings at the end of each 5 -year period: Part (b): You will retire at the end of year 20 and move your investments to a safer account that will earn 3w apr per year. If you expect to live for another 20 years. what is the maximum amount you could withdraw each month and not run out of money for 20 vears? The appropriate PVFA for this calculation is You could withdraw a maximum of per month. Part (c): Suppose it is the end of year 15, and you know you want to have an income of $7,000 per month in retirement. If you still plan to retire at the end of year 20 , how much would you have to save per month for the last 5 vears to meet your goal? Put your answer here Part (d). You decide your answer from part (c) is too high, so you will seek a higher return. Assuming you will save the original amount per month from years 1620, What rate of return would you have to earn in the last 5 years to meet your goal? Report this answer as an APR. Put your answer here

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