You are 30 years old today. You want to retire at the age of 65. You expect to live until age 90. You would like to have annual income of $160,000 in retirement. How much do you have to save (per year) during your working years in order to achieve your retirement goal? Assume end of period payments, so you start saving at age 31, end savings on your 65th birthday, begin retirement withdrawals at age 66, and make your last retirement withdrawal at age 90. Assume an interest rate of 5%.

You are 30 years old today. You want to retire at the age of 65. You expect to live until age 90. You would like to have annual income of $160,000 in retirement. How much do you have to save (per year) during your working years in order to achieve your retirement goal? Assume end of period payments, so you start saving at age 31, end savings on your 65th birthday, begin retirement withdrawals at age 66, and make your last retirement withdrawal at age 90. Assume an interest rate of 5%.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 39P

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