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FINAL EXAM PRACTICE PROBLEMS RETIREMENT ANSWERS INCLUDED

# FINAL EXAM PRACTICE PROBLEMS RETIREMENT ANSWERS INCLUDED -...

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Finals practice problems. You should end up with the answer that is given. April wants to have 1.75 Million dollars in her retirement account in 45 years. If she gets an annual rate of return of 7.75% on her investment. How much does she need to save each year to have 1.75 million dollars in her account? Answer: \$4,885.76 Ben wants to retire in 30 years. He needs to have 4.5 million dollars in his retirement account to live his current life style at retirement. How much does Ben have to invest each year to have that much in 30 years if he receives an annual rate of return of 12.5%? Answer: \$16,921 Courtney is planning for her children’s education. She has 14 children. She expects she will need 2.25 million dollars to put them all through college. Courtney is 31. The children will enter college in 15 years. How much must she put away each year for her children’s education fund? She is currently earning a 9.5% rate of return on her investments. Answer: \$73,674 Daphne has just retired. She has \$1 million dollars in her retirement account. It is earning 8% interest. She is 65 and knows she is going to live only 10 more years. How much can she draw annually out of her account each year until her death in 10 years?

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