You plan to retire in 20 years. Create a fund to receive $20,000 at the end of each year for 30 years between retirement and death at 11% per year during the 30 year 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 in part a if you can 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?
Paper#8423 | Written in 18-Jul-2015Price : $25