Order to reach your retirement goal

Assignment Help Financial Management

Reference no: EM131875518

a. You know that you need $2,100,000.00 in order to fund your retirement in 30 years. Assuming you can earn 9% annual return on your investments, how much do you need to invest per month, in order to reach your retirement goal?

b. Your friend decides that he needs to receive a retirement payment of 70,000 dollars per year from a retirement fund that is projected to earn 8.5% per year. He is planning on a 20 year retirement. How much money does he need to have on hand when he retires, in order to fund this?

c. You want to retire on $75,000 per year (in today's terms). You will retire in 35 years. Inflation is expected to be 3%. How much will you need per year during retirement to have the same standard of living as you have today?

d. If you want to live on the equivalent of $100,000 per year (in today's term) how much money will you need 25 years from now, at 3.5% inflation?

e. Your plan is to have $4,500,000 on hand to retire 40 years from now. At 9% interest (annual), how much do you need to invest each month, in order to save the $4.5 million?

f. You would like to receive a retirement payment of $250,000 per year for 30 years. You plan to earn 7.5% interest while in retirement. How much money do you need in a lump sum at retirement, in order to fund this?

Reference no: EM131875518

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