Author Question: You plan to retire at age 65. You want to withdraw $100,000 from your savings account every year ... (Read 65 times)

fasfsadfdsfa · **on:** Apr 25, 2021

Question 1

You have the opportunity to buy a perpetuity which pays $1,000 annually. Your required rate of return on this investment is 15 percent. You should be essentially indifferent to buying or not buying the investment if it were offered at a price of
◦ $5,000.00.
◦ $6,000.00.
◦ $6,666.67.
◦ $7,500.00.
◦ $8,728.50.

Question 2

You plan to retire at age 65. You want to withdraw $100,000 from your savings account every year starting on your 65th birthday. You expect to make your final withdrawal on your 84th birthday. How much must you have accumulated by your 65th birthday in order to support your desired withdrawals if you earn 3% on your savings?
◦ $1,532,379.91
◦ $1,587,747.49
◦ $1,475,351.31
◦ $1,432,379.91
◦ $1,090,095.56

b614102004 · **Reply #1 on:** Apr 25, 2021

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 55% of students answer this correctly