you are planning for a very early retirement. you would like to retire at age 40 and have enough money saved to be able to withdraw $235,000 per year for the next 40 years (based on family history, you think you will live to age 80). you plan to save by making 20 equal annual installments (from age 20 to age 40) into a fairly risky investment fund that you expect will earn 12% per year. you will leave the money in this fund until it is completely depleted when you are 80 years old.
you are planning for a very early retirement. you would like to retire at age 40 and have enough money saved to be able to withdraw $235,000 per year for the next 40 years (based on family history, you think you will live to age 80). you plan to save by making 20 equal annual installments (from age 20 to age 40) into a fairly risky investment fund that you expect will earn 12% per year. you will leave the money in this fund until it is completely depleted when you are 80 years old.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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you are planning for a very early retirement. you would like to retire at age 40 and have enough money saved to be able to withdraw $235,000 per year for the next 40 years (based on family history, you think you will live to age 80). you plan to save by making 20 equal annual installments (from age 20 to age 40) into a fairly risky investment fund that you expect will earn 12% per year. you will leave the money in this fund until it is completely depleted when you are 80 years old.
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