I need help with a business and finance assignment

label Business
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

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

Nov 28th, 2015

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.
Nov 28th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Nov 28th, 2015
...
Nov 28th, 2015
Oct 18th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer