Unformatted text preview: 2) (10 points) If Anita says that she can invest $10,000.00 / yr, compute the rate of return she must make in order to be able to retire at age 62. 3) (10 points) Anita is concerned about the effects of inflation during her retirement phase. Compute the amount Anita will need on the day she retires if she wishes to maintain her retirement purchasing power in the face of 2% inflation. 4) (10 points) Anita’s history of investment returns is: Year 1 2 3 4 5 % 15% 2% 25% 30% 2% Compute Anita’s realized rate of return. 5) (10 points) Anita suddenly remembers that she also wants to leave $100,000 to her favorite nephew. Compute the amount Anita will now need on the day she retires (ignore inflation)...
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- Spring '09
- Anita, Anita Lottabucks, Compute Anita