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Your older brother turned 35 today, & he is planning to save GH7,000/year for retirement, with the first deposit to be made one year from
Your older brother turned 35 today, & he is planning to save GH7,000/year for retirement, with the first deposit to be made one year from today. He will invest in a mutual fund that's expected to provide a return of 7.5%/year. He plans to retire 30 years from today, when he turns 65, & he expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can he spend each year after he retires? His first withdrawal will be made at the end of his first retirement year (10 marks)
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