I need help with a business and finance assignment

Anonymous
timer Asked: Nov 28th, 2015
account_balance_wallet $5

Question Description

If you plan to retire at the age of 65 and believe you will live to be 90, and want to receive an annual retirement payment of $50,000 each year, the account will earn 6% interest annually, how much money must you have in your account when you reach 65. You are current 29 years old. How much must you invest each year for the next 36 years to have the required amount in his account at age 65

Tutor Answer

Professor Mary
School: UCLA

Thank you for the opportunity to help you with your question!

retire=65yrs

annual retirement ammount=850000

interest rate=6%pa

age =29yrs 

remainaing yrs=36

p*6/100*1=$850000

principle=$14166666.7

time=65-29=36yrs

14166666.7*36*6/100

           =$30,600,000

Please let me know if you need any clarification. I'm always happy to answer your questions.

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Review

Anonymous
Excellent job

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