What is your real rate of return

Assignment Help Financial Management

Reference no: EM132040429

You are 35 years old, and have not saved any money yet. You hope to retire at age 65, with a sustainable income of $150,000 per year of current buying power. You assume that inflation will be 3.1% and the fund you want to invest in will return 7.70% per year from now until your death.

a) What is your real rate of return?

b) How much money do you need in today's dollars to reach your income goal? $

c) What is that amount in future actual dollars? $

d) how much do you need to save each year to reach your savings goal? $

Reference no: EM132040429

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