Assume that you work from age 25 to age 65. At the end of each year, you
Question:
Assume that you work from age 25 to age 65. At the end of each year, you contribute C to your pension fund, which is invested at a yearly rate r = 5%. At age 65 you retire and plan to consume $20,000 each year, until you die. Assuming that you die at age 85, and that interest rates remain constant, how much should you save each year? How does the result change if, due to your reckless lifestyle, you assume that departure will occur at age 75? (Hint: Use Problem 2.10.)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Quantitative Methods An Introduction For Business Management
ISBN: 1579
1st Edition
Authors: Paolo Brandimarte
Question Posted: