Money available for replacing their family vehicle

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Reference no: EM131973437

1. In order to have money available for replacing their family vehicle, a couple planned to have $220,000 available in 10 years by investing in a global mutual fund. If they plan to increase their savings by 10% each year, how much must they invest in year 1 if they expect to earn 10% per year on their investments?

2. If you plan to have $4,000,000 when you retire, how long will you be able to withdraw $500,000 per year if the account earns interest at a rate of 6% per year? (Hint: Use interpolation)

Reference no: EM131973437

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