Question

Question is asked after the following steps:

1. Considering retirement in 27 years
2. Currently earning salary of $45,000
3. Average historical inflation rate is 4.25%
4. Prior to retirement, I expect to earn 11% on all investments
5. After retirement I plan on earning 6% rate of return
6. At retirement I wish to earn 100% of current salary (adjusted for inflation)
7. Amount above is to be a growing annuity during retirement
8. Expect to live for a total of 46 years after retirement
9. I just started placing $10,000 annually in a mutual fund available for retirement.
10. I also received $15,000 from my great aunt, that was placed in retirement fund 12 years ago.
11. My Great Uncle also set up a fund that will pay an annuity of $8,000 every six months.

Questions:
Calculate annual payment amounts that I will either, (a) need to start making now, or, (b) be able to withdraw starting now so that I will have enough funds for retirement.

Solution Preview

This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

Finance Questions - Retirement Calculation

This is only a preview of the solution. Please use the purchase button to see the entire solution

$20.00

or free if you
register a new account!

Related Homework Solutions

Mutual Fund Evaluation
Homework Solution
$48.00
Business
Finance
Mutual
Fund
Evaluation
Assets
Value
Investment
Telephone Exchanges
Charge
Fee
12b-l
Expense Ratio
Investment Objective
Stock
Bond
Holdings
Manager
Performance
Peer
Finance Questions
Homework Solution
$93.00
Business
Finance
Bank
Deposit
FDIC
Balance Sheet
Loan
Capital Ratio
Risk
Mortgage
Rate
Interest
Fund Market
Bank Failure
Stock
NAV
Gain
12b-1
Fee
Expense Ratio
Back End
Front End
Loan
Probability
Z Value
Retirement
Income
IRA
Finance Questions
Homework Solution
$13.00
Business
Finance
ER
Remnimbi
Yen
Interest
China
Japan
Thailand
US
Sales
Production
Finance Questions
Homework Solution
$60.00
Business
Finance
Stock
Price
Dividend
Striking Price
Delta
Volatility
Shares
T-bill
Discount
Gain
Get help from a qualified tutor
Live Chats