A middle-aged school teacher is dreaming about retirement. She believes she can comfortably leave the workforce in 12 years if her savings has grown to $600,000. Currently, she has $425,000 saved in her retirement fund. What rate of return must her current savings earn per year to reach her goal? Assume interst rates are compounded annually.      about 12% per year     a little more than 7% per year     a little less than 3% per year     about 41% per year

Q: Katie is 25 years old and wants to save $1 million for retirement in 40 years. Assume she invests in…

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Q: Suppose that a young couple has just had their first baby and they wish to ensure that enough money…

A: Step 1: The question has been solved in writing. You can put it into Excel format.  (My Excel is not…

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A: The PV of an investment refers to the value of the cash flows of the investment assuming that they…

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Q: 11. Zoe has been depositing $900 every month into her retirement account for 35 years. The annual…

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A: Note: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…

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A:

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A: Excel Spreadsheet: Excel Workings:

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A: Monthly retirement income=$4500Retirement life=30 yearsInheritance fund-$2000000Interest rate=8%

Q: This is a classic retirement problem. A friend is celebrating her birthday and wants to start saving…

A: a) Working note:

Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.