Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You plan to retire 33 years from now. You expect that you will live 27 years after retiring. You want to have enough money upon

image text in transcribed
You plan to retire 33 years from now. You expect that you will live 27 years after retiring. You want to have enough money upon reaching retirement age to withdraw $130,000 from the account at the beginning of each year you expect to live, and yet still have $2,200,000 left in the account at the time of your expected death (60 years from now). You plan to accumulate the retirement fund by making equal annual deposits at the end of each year for the next 33 years. You expect that you will be able to earn 13% per year on your deposits. However, you only expect to earn 9% per year on your investment after you retire since your will choose to place the money in less risky investments. What equal annual deposits must you make each year to reach your retirement goal? $2,948.24 $3,393.84 $3,331.51 $3,835.04 $4,331.06

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Healthcare Finance An Introduction To Accounting And Financial Management

Authors: Louis C. Gapenski

4th Edition

1567932800, 978-1567932805

More Books

Students also viewed these Finance questions

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago

Question

Have a brief review of human motivation theories

Answered: 1 week ago