Question

Funding your retirement You plan to retire in exactly 20 years. Your goal is to
create a fund that will allow you to receive $20,000 at the end of each year for the
30 years between retirement and death (a psychic told you would die exactly 30
years after you retire). You know that you will be able to earn 11% per year during
the 30-year retirement period.
a. How large a fund will you need when you retire in 20 years to provide the
30-year, $20,000 retirement annuity?
b. How much will you need today as a single amount to provide the fund calculated
part a if you earn only 9% per year during the 20 years preceding retirement?
c. What effect would an increase in the rate you can earn both during and prior to
retirement have on the values found in parts a and b? Explain.
d. Now assume that you will earn 10% from now through the end of your retire-​

Answer 1

Answer:

afsfjdddmgmgdnggngmddmgdnfmgdmdhdmgs