Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a woman plans to retire in 40 years, and she expec

A woman plans to retire in 40 years, and she expects to live for 30 years...

80.2K

Verified Solution

Question

Finance

A woman plans to retire in 40 years, and she expects to live for30 years after that. She wants to spend 10,000 a month after sheretires. To finance her retirement she is going to invest monthly(with her investment one month from know) over 40 years at 12.6%.After she retires she will move her investment to a more liquidaccount earning 7.2% a year. Ignore taxes and transaction costs.How much does she have to sabe a month until her retirement.

Finance 311, intermediate finance

Answer & Explanation Solved by verified expert
3.9 Ratings (446 Votes)
Retirement Tenure 30 years or 30 x 12 360 months Rate of Return post Retirement 72 Applicable Monthly Rate 72 12 06 and Monthly Withdrawals Post    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

A woman plans to retire in 40 years, and she expects to live for30 years after that. She wants to spend 10,000 a month after sheretires. To finance her retirement she is going to invest monthly(with her investment one month from know) over 40 years at 12.6%.After she retires she will move her investment to a more liquidaccount earning 7.2% a year. Ignore taxes and transaction costs.How much does she have to sabe a month until her retirement.Finance 311, intermediate finance

Other questions asked by students

Q

Select Strong association, Weak association, or Moderate association to correctly classify each correlation coefficient.Correlationcoefficient Strongassociation...

Algebra
Q

1330 3 in physical education class Lizzie ran the 50 yard dash in t seconds...

Basic Math
Q

Anthony works as a salesperson at an electronics store and sells phones and phone accessories....

Basic Math
Q

A math class consists of 14 female students and 17 male students Two students are...

Statistics
Q

Melissa collected the data in the table X 1 23 4 Given 2 3 00...

Algebra
Q

then solve the problem given below Click here to watch the video Graph the function...

Algebra
Q

. Many banks now offer a variety of computer services to clients. Why is it...

Accounting
Q

Snow-Tech Inc. sells an Xpert ski that is popular with ski enthusiasts. The following information...

Accounting
Q

Sweeten Company had no jobs in progress at the beginning of the year and no...

Accounting
Q

Exercise 12-6 (Algo) Income allocation in a partnership LO P2 Ramer and Knox began a...

Accounting
Q

solve this asap ! Solve the following mention questions: 1)...

Accounting
Q

Question 2 or 7 Date Units Units L, Unit Price 3421 208...

Accounting