Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You plan to save $1,200 per month for the next 35 years until you retire. After you retire you want to withdraw $450,000 per year

You plan to save $1,200 per month for the next 35 years until you retire. After you retire you want to withdraw $450,000 per year for 30 years. If you expect to earn 6% after retirement, what annual rate will you need to earn until you retire to meet your goal?

A. 19.64%

B 15.02 %

C. 11.99%

D. 11.18%

Please explain the steps on how to work it out on a TI83 calculator.

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

International Finance Transactions Policy And Regulation

Authors: Hal Scott, Anna Gelpern

21st Edition

1634602048, 978-1634602044

More Books

Students also viewed these Finance questions