You estimate that you would like to retire in 25 years with an annual salary of $110,000. Your estimates from past experience is that your investments will yield on average 6.5 % per year and you expect that the inflation rate will be 3.25% on average per year. Using the 4% rule and the "Safe With-drawl Rate," provide the following a) How much money (principle) do you need for retirement in 25 years. b) So as not to deplete your principle at the investment and inflation rates provided above, calculate the first 5 years of your retirement schedule.
You estimate that you would like to retire in 25 years with an annual salary of $110,000. Your estimates from past experience is that your investments will yield on average 6.5 % per year and you expect that the inflation rate will be 3.25% on average per year. Using the 4% rule and the "Safe With-drawl Rate," provide the following a) How much money (principle) do you need for retirement in 25 years. b) So as not to deplete your principle at the investment and inflation rates provided above, calculate the first 5 years of your retirement schedule.
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...
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