Youwillneedtoborrow250000topurchasethehomea

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Unformatted text preview: until you reach age 65. Assume that the rate of interest is 7%. 17) The present value (at age 30) of your retirement savings is closest to: A) $87,000 B) $108,000 C) $46,600 D) $75,230 18) The future value at retirement (age 65) of your savings is closest to: A) $497,530 B) $928,895 C) $1,263,236 D) $108,000 26) Assume that you are 30 years old today, and that you are planning on retiring at age 65. Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this yearʹs salary. Likewise, you expect to deposit 8% of your salary each year until you reach age 65. At retirement (age 65) you will begin withdrawing equal annual payments to pay for your living expenses during retirement...
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