You plan to retire in exactly 20 years. Your goal is to create a fund that will allow you to receive $120,000 at the end of each year for the 25 years between retirement and death (health studies have indicated that most people die 25 years after retirement). You know that you will be able to earn 3% per year during the 25-year retirement period. $120,000 per year for 25 years TODAY RETIREMENT 20 years later EXPECTED DEATH 25 years later a) How large of a lump-sum will you need to have in your retirement fund at retirement to ensure you can receive/access $120,000 retirement annuity for the
You plan to retire in exactly 20 years. Your goal is to create a fund that will allow you to receive $120,000 at the end of each year for the 25 years between retirement and death (health studies have indicated that most people die 25 years after retirement). You know that you will be able to earn 3% per year during the 25-year retirement period. $120,000 per year for 25 years TODAY RETIREMENT 20 years later EXPECTED DEATH 25 years later a) How large of a lump-sum will you need to have in your retirement fund at retirement to ensure you can receive/access $120,000 retirement annuity for the
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Good day. I need assistance with part c.
Answer for A = $2089577.72
Answer for B = $1406225.90
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