nswer part a, a(i), a(ii), of this textbook question a) You are 35 years old today and are considering your retirement needs. You expect to retire at age 65 (in 30 years) and you plan to live to age 99. You want to buy a house costing $300,000 on your 65th birthday and your living expenses will be $30,000 a year after that (starting at the end of year 65 and continuing through the end of year 99, i.e. for 35 years). Assume an annual interest rate of 8%, annual compounding: (i) How much will you need to have saved by your retirement date to be able to afford this course of action? (ii) Suppose you already have $50,000 in savings today. If you can invest money at 8% a year, how much would you need to save at the end of each yea
Please answer part a, a(i), a(ii), of this textbook question
a) You are 35 years old today and are considering your retirement needs. You expect to retire at age 65 (in 30 years) and you plan to live to age 99. You want to buy a house costing $300,000 on your 65th birthday and your living expenses will be $30,000 a year after that (starting at the end of year 65 and continuing through the end of year 99, i.e. for 35 years). Assume an annual interest rate of 8%, annual compounding:
(i) How much will you need to have saved by your retirement date to be able to afford this
course of action?
(ii) Suppose you already have $50,000 in savings today. If you can invest money at 8% a year, how much would you need to save at the end of each year for the next 30 years to be able to afford this retirement plan?
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