financial-planning-question-answer-the-following-question-parts-a-b-and-c-show-all-work
- Mrs. D who 27 years old plans to retire at the age of 55. Mrs. D would like to be able to withdraw $132,000 per year from her retirement account for 45 years after retirement beginning the year after her retirement. She is also expecting an inheritance of $54,000 to be transferred to her on her 35th birthday.
- a How much does she need to have in her retirement account by retirement date if the interest rate is 6% per year during the post-retirement years?
- b Suppose she already has $12,000 in her retirement investment account that earns 9% per year. What will be the value of this amount by her retirement date?
- c Given her goal, her expected inheritance, and the investment she already has in 1b, how much does she need to invest per year from now till retirement (at 9% annual rate of return) in order to reach her retirement goal?
