Challenge question 11 you plan to save for retirement

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Challenge Question 11You plan to save for retirement beginning at age 22. In addition to the $1,000 IRD startup deposit at age 22 you will deposit $400 per month into a KiwiSaver growth account that earns 9% p.a. with monthly compounding. Payments will be made at the end of each month. How much will be available to live on during retirement when you turn 67 years old?A.$2,572,449B.$3,306,646C.$3,244,806D.$3,293,133
E.$3,018,488
Challenge Question 12Now assume that you live until age 90 (23 years after retirement). If you had saved $4,000,000 for retirement how much can you withdraw at the end of each month, assuming the money remains invested and earns 4% p.a. with monthly compounding during your retirement years?
Challenge Question 13An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child’s birth. The details of the policy are as follows: The purchaser (say the parent) makes the following six payments to the insurance company:After the child’s sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $350,000. If the relevant interest rate is 10% p.a for the first six years and 7% p.a. for all subsequent years, is the policy worth buying?

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