Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you have just turned 22 years old, have just recei

You have just turned 22 years old, have just received your bachelor's degree, and have...

90.2K

Verified Solution

Question

Finance

You have just turned 22 years old, have just received your bachelor's degree, 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 dollar in the plan earns 6.6% per year. You cannot make withdrawals until you retire on your 65th 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 estimate that to live comfortably in retirement, you will need $95000 per year, starting at the end of the first year of retirement and ending on your 100th birthday. You will contribute the same amount to the plan at the end of every year that you work. How much do you need to contribute each year to fund your retirement?

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

Chemistry
1.2K views

Iron reacts with chlorine gas according to the following balanced chemical equation: 2Fe(s)+3Cl2(g)→2FeCl3(s) A) What mass of iron(III)...

Physics
1.2K views

Object A is moving due east, while object B is moving due north. They collide and...

Basic Math
1.2K views

Solve for y, where y is a real number.y 1/4=3

Basic Math
1.2K views

Write the negation of the statement Everyone in the class was bored by the professor...

Calculus
1.2K views

Population Growth The graph of P t below shows the population in thousands of people...

Algebra
1.2K views

Ana Paula currently sells stoves for Lester s Stove Store at a salary of 16...

Accounting
1.2K views

Exercise 15-21 Your answer is partially correct. Try again The outstanding capital stock...

Accounting
1.2K views

Current Attempt in Progress Blue Spruce Company had 115 units in beginning inventory at...

Accounting
1.2K views

The supply function for Gizmos is given by the equation P=0.66-O+11P=0.66-Q+11, and the demand function...

Accounting
1.2K views

Alvarez Companys output for the current period yields a $20,000 favorable overhead volume variance and...

Accounting
1.2K views

POINTS) Label all work and show all calculations.Bertucci Corporation makes three products that use the...

Finance
1.2K views

(Related to Checkpoint 13.3) (Scenario analysis) Family Security is considering introducing tiny GPS trackers that...