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you are planning for your retirement and have decided the following: you will retire in 35 years and would like to have $8,000 per month as retirement income for 30 years of retirement. you have access to an account that earns a 7% rate of return. a. how much will you need to have when you retire to be able to withdraw the desired $8,000 per month during your years of retirement

Respuesta :

Answer:

Amount needed to have in account = 99272

Explanation:

Below are the calculations:

Annual income after retirement, annuity = $8000

The time period or the retirement life = 30 years

The Interest rate earned by account = 7%

The amount in the account at the time of retirement = Annuity (P/A, r, n)

The amount in the account at the time of retirement = 8000 (P/A, 7%, 30)

The amount in the account at the time of retirement = 8000 x 12.409

The amount in the account at the time of retirement = 99272

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