Ans_to_minicase_Camille

Ans_to_minicase_Camille - Facts 1 2 3 4 5 6 7 Camille, age...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Facts 1 Camille, age 35 is planning for her retirement at age 60. 2 She has savings of $55,000. 3 She invests $2000 per year, at the end of each year, in a retirement account at an interest of 10% 4 The average inflation rate is 2.86% per year 5 She thinks she needs $40,000 ( as per current dollar value) per year to live comfortably. 6 She expects to live up to the age of 88. 7 On January 1st, she will withdraw her first installment for retirement. Inflation 2.86% Age Date Event Time Line Expenses Saving 35 ### Today 0  40,000.00  -55000 36 ### 1  41,144.00  37 ### 2  42,320.72  Question 1 If Camille continues on her current plan, will she be able to accomplish it? 38 ### 3  43,531.09  39 ### 4  44,776.08  Ans No!!! Because her expenses are more than her saving at age of 60 40 ### 5  46,056.68  41 ### 6  47,373.90  Expenses N=25 42 ### 7  48,728.79  Pmt=-2000 43 ### 8  50,122.43  I=10% 44 ### 9
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/13/2012 for the course ECON 101 taught by Professor Teerana during the Spring '11 term at Thammasat University.

Ask a homework question - tutors are online