Question 6 5.1: You estimate that to live comfortably after retirement, you will need 150,000...
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Question 6 5.1: You estimate that to live comfortably after retirement, you will need 150,000 per year starting at the end of the first year of retirement and ending on your 100th birthday. You have just turned 30 years old, and have accepted your first job. Now you must decide how much money to put into your retirement plan. The plan works as follows: Every pound in the plan earns 9% per year. You cannot make withdrawals until you retire on your sixty-fifth birthday. After that point, you can make withdrawals as you see fit. You decide that you will plan to live to 100 and work until you turn 65. You will contribute the same amount to the plan at the end of every year that you work. REQUIRED: How much do you need to contribute each year to fund your retirement? You are also considering a different retirement plan too where you intend to withdraw 150,000 in the first 20 years of your retirement, 120,000 in the next 10 years and 100,000 in the last 5 years. Assuming everything else stays the same as in before, what amount of your income do you need to contribute to the plan every year to fund the retirement income. (10%) Discuss some of the evidence that supports the weak form of efficiency and some of the anomalies found in the literature regarding the weak form of efficiency. (maximum word count for this part is 650 words) (15%) (Total: 25%) BAN
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