Kiersten wants to retire in Tahiti in 30 years. During her retirement, she would like to withdraw $120,000 per year in order to maintain her maids and beach house. During her retirement, she'll earn a 3% rate of return and expects to live another 25 years. How much money must she invest at the end of each year until her retirement if she expects to earn 6% on her investments (until she retires)?
Value of corpus at the time of retirement should be = Present Value at the time of retirement of... View the full answer
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Solution: 1 st step lets calculate the amount that she is expected to have accumulated upon retiring: This will be the... View the full answer