FIN-504 M3. P5-24.pdf - P5 24 Funding your retirement Emily...

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P5 - 24How much money must Emily set aside now to achieve that goal? It may be help-ful to construct a timeline to visualize the details of this problem.Emily realizes that once she retires she will want to have less risky investments that will earn a slightly lower rate of return, 8% rather than 11%. If Emily can earn 11% on her investments from now until age 65, but she earns just 8% on her investments from age 65 to 90, how much money does she need to set aside today to achieve her goal?Funding your retirement Emily Jacob is 45 years old and has saved nothing for retire-ment. Fortunately, she just inherited $75,000. Emily plans to put a large portion of that money into an investment account a.b.c.Answer:
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Investment Value = HV * PVIF(11%,20)How much money must Emily set aside now to achieve that goal? It may be help-ful to construct a timeline to visualize the details of this problem.Emily realizes that once she retires she will want to have less risky investments that will earn a slightly lower rate of return, 8% rather than 11%. If Emily can earn 11% on her investments from now until age 65, but she earns just 8% on her investments from age 65 to 90, how much money does she need to set aside today to achieve her goal?Funding your retirement Emily Jacob is 45 years old and has saved nothing for retire-ment. Fortunately, she just inherited $75,000. Emily plans to put a large portion of that money into an investment account

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