You plan to retire at the age of 65 and be able to live for 30 years paying yourself $80,000 per year each year during retirement. Assuming that you plan to work for 40 years, how much you should be setting aside each year to meet this goal? Your retirement savings earn 2.5% per year.
You plan to retire at the age of 65 and be able to live for 30 years paying yourself $80,000 per year each year during retirement. Assuming that you plan to work for 40 years, how much you should be setting aside each year to meet this goal? Your retirement savings earn 2.5% per year.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 23P
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Transcribed Image Text:You plan to retire at the age of 65 and be able to live for 30 years paying yourself $80,000 per year each year
during retirement. Assuming that you plan to work for 40 years, how much you should be setting aside each year
to meet this goal? Your retirement savings earn 2.5% per year.
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