Molly would like to spend $55,000 (inflation adjusted, in today's dollars) each year in retirement for 35 years (beginning of year). She believes she can earn a 8.5% rate of return pre-retirement, 5.5% during retirement, and inflation will be 3.0%. She has 30 years until he plans on retiring and she's already saved $50,000 towards her goal. Approx. how much does she need at retirement to accomplish her goal? O $4,236,000 $3,200,023 O $2,759,000 O $1,980,000

Monica has decided that she wants to build enough retirement wealth, if invested at 8 percent per year, to provide her with $3,500 of monthly income for 20 years. To date, she has saved nothing, but she still has 30 years until she retires. How much money does she need to contribute per month to reach her goal? First compute how much money she will need at retirement, then compute the monthly contribution to reach that goal.

Shelly Franks is planning for her retirement, so she is setting up a payout annuity with her bank. She is now 25 years old, and she will retire when she is 65. She wants to receive annual payouts for twenty years, and she wants those payouts to receive an annual COLA of 2.8%. (a) She wants her first payout to have the same purchasing power as does $14000 today. How big should that payout be if she assumes inflation of 2.8% per year? (b) How much money must she deposit when she is 65 if her money earns 8.1% interest per year? (c) How large a monthly payment must she make if she saves for her payout annuity with an ordinary annuity? (The two annuities pay the same interest rate.) (d) How large a monthly payment would she make if she waits until she is 30 before starting her ordinary annuity?

Gd