You are now planning your own retirement. You feel that you can retire comfortably if you can amass $2,352,268. You also believe that you can manage to save $6,629 per year after you start your first job after you graduate from Tarleton State University. You will be starting with an investment account with $0 in it. If you think you can earn 11.64% per year in your retirement/investment account, how long will you have to work before you can retire? Please enter you response with two significant decimal places for instance 12.34776 years would be entered as 12.35.

You are now planning your own retirement. You feel that you can retire comfortably if you can amass $2,352,268. You also believe that you can manage to save $6,629 per year after you start your first job after you graduate from Tarleton State University. You will be starting with an investment account with $0 in it. If you think you can earn 11.64% per year in your retirement/investment account, how long will you have to work before you can retire? Please enter you response with two significant decimal places for instance 12.34776 years would be entered as 12.35.

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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Similar questions

After graduation from university, you start working and you want to plan for your retirement. You will be retiring in 25 years and during your retirement, you plan to spend USD 20,000 per year. You expect your retirement to last 30 years. You believe you can earn 8% on your retirement savings. If you make annual payments into a retirement plan during your working life, how much will you need to save each year to reach your retirement goal? (You will make the first payment at the end of the year).
You are trying to decide how much to save for retirement. Assume you plan to save $4,500 per year with the first investment made one year from now. You think you can earn 6.0% per year on your investments and you plan to retire in 45 years, immediately after making your last $4,500 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $4,500 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 16 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 16th withdrawal (assume your savings will continue to earn 6.0% in retirement)? d. If, instead, you decide to withdraw $191,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it…
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