Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. ella has plans to retire at 65, however, she does

Ella has plans to retire at 65, however, she does not know how much she...

50.1K

Verified Solution

Question

Finance

Ella has plans to retire at 65, however, she does not know how much she should have saved by then. She expects to live until the age of 90 and wants to live on an annual income of $74k (real value) that would come out of her retirement savings. Although she can't say for sure, Ella hopes that inflation rates will be at 4.02% and her investments will yield a return of 7.85% throughout her retirement.

Using her assumptions, how much should Ella aim to have saved by the time she's 65? (Hint: she wants to have $0 when she is 90)

Note: please enter your answer without a "$" sign to be correctly graded by canvas.

Answer & Explanation Solved by verified expert
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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Algebra
1.2K views

Perform the division.- 8x5+20x610x6- 8x5 + 20x610x6(Simplify your answer.)

Statistics
1.2K views

In a survey of 3939 ​adults, 705 say they have seen a ghost. Construct a​ 99%...

Physics
1.2K views

Here is a web site that talks about how much carbon dioxide is created when a...

Mechanical Engineering
1.2K views

A turbine blade of solution annealed INCOLOY alloy 800 is 18 in long and operates at...

Physics
1.2K views

A rare decay mode has been observed in which Ra emits a ?C nucleus.a. The...

Geometry
1.2K views

7 In the following diagram C 30 150 D y A i Value of y...

Basic Math
1.2K views

The annual interest rate on a credit card is 13 99 If a payment of...

Statistics
1.2K views

Contaminated water The concentration of benzene was measured in units of milligrams per liter for...

Statistics
1.2K views

Market researchers conducted a study about which words most affected young consumers who regularly bought...

Statistics
1.2K views

SHOW ALL WORK FOR CREDIT 1 point 4 Ereesha s height has a z score...

Accounting
1.2K views

You are the auditor of We-R-Beer Limited (We-R-Beer), a Namibian based beer manufacturing and distribution...

Accounting
1.2K views

You and your spouse have inherited $350,000 and are making some decisions on how to...