Making plans for retirement

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Reference no: EM131358206

You plan to deposit $2,200 per year for 4 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today.

a. What amount will be in your account at the end of 4 years? Round your answer to the nearest cent. Do not round intermediate calculations.

2. You and your wife are making plans for retirement. You plan on living 25 years after you retire and would like to have $95,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 10% annually.

a. What amount do you need in your retirement account the day you retire? Round your answer to the nearest cent. Do not round intermediate calculations.

$  

b. Assume that your first withdrawal will be made the day you retire. Under this assumption, what amount do you now need in your retirement account the day you retire? Round your answer to the nearest cent. Do not round intermediate calculations.

$

Reference no: EM131358206

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