Question
Your task is to calculate the annual deposits that your 25-year-old friend would need to make to achieve the following: She would like to draw
Your task is to calculate the annual deposits that your 25-year-old friend would need to make to achieve the following: She would like to draw 65% of his final years salary level at the beginning of each year for 20 years following her retirement at age 65. You believe he can earn 8% on his your investments. Her current salary is $45,000 and you believe she will receive average raises of 6% per year for the next 39 years. She will make her first deposit on 12/31/2019 and his last deposit on 12/31/2057, and her first withdrawal on 1/1/2059. 1. What is his expected salary for 2058? 2. How much would he like to draw each year? 3. How much will he need in his retirement account on the day of his retirement? 4. How much will he need to put away each year? 5. How much would he have to put away each year if he wanted to make the first contribution on 12/31/2034? 6. How much would he have to put away each year if she wanted to make the first contribution on 12/31/2019 and the last contribution on 12/31/43?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started