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In: Finance

You are 30 years old and want to retire at the age of age 65 and...

You are 30 years old and want to retire at the age of age 65 and expect to live another 25 years. On the day you retire, you want to have $900,000 in your retirement savings account.

a) If you invest monthly starting one month from today and your investment earns 6.0 percent per year, How much money do you need to invest every month until you retire?
b) You're retired with $900,000 and you have 25 more years. You are conservatively expecting to earn 5% on your money during your retirement. At the end of 25th year of retirement you still want to have $100,000 just in case you will leave more. How much can you withdraw from your retirement savings each month if you plan to have $100,000 at the end of your 25th year after your retirement?

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

SOLVED WITH BA II PLUS CALCULATOR AS WELL AS FORMULA

jeff jeffy answered 2 years ago
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