Question 2: You plan to retire 30 years from today on a perpetual weekly income of...

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Question 2: You plan to retire 30 years from today on aperpetual weekly income of $1500 per week(i.e. for the purposes ofthis example. Assume that you live forever). Assuming that yoursavings earn a n APR of 5% during retirement and 7% beforeretirement (both with semi-annual compounding), how much moneywould you need to start saving at the end of each month untilretirement to achieve your goal? (52 weeks in a year)
Assume that you also have $10000 dollars today to start yoursavings. Now what is the monthly amount you must save to attainyour goals in the part above?
How much would you have to save per month in part b if you madeyour contributions at the beginning instead of the end of eachmonth?

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4.4 Ratings (947 Votes)

You need 15005278000 per year at retirement periodEffective Interest rate per year during retirement15221506Present Value ie Value of money required See Answer

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Question 2: You plan to retire 30 years from today on aperpetual weekly income of $1500 per week(i.e. for the purposes ofthis example. Assume that you live forever). Assuming that yoursavings earn a n APR of 5% during retirement and 7% beforeretirement (both with semi-annual compounding), how much moneywould you need to start saving at the end of each month untilretirement to achieve your goal? (52 weeks in a year)Assume that you also have $10000 dollars today to start yoursavings. Now what is the monthly amount you must save to attainyour goals in the part above?How much would you have to save per month in part b if you madeyour contributions at the beginning instead of the end of eachmonth?