Posted: October 10th, 2022
Your cousin Beth currently works at a tech firm and is earning $94,000 per year. She expects her salary to grow at a rate of 4% per year for the next 15 years until she retires. She would like a retirement income equivalent to 70% of her final salary. If she can earn a 10% annualized rate of return on her investments how much will she have to deposit monthly to achieve that goal. Assume she currently has no savings. Beth anticipates living 20 years after she retires and will keep her funds in the same investment vehicle. She anticipates inflation to be 2% per annum.
The part above was completed in class at Residency. The part below is what is to be submitted for a grade.
Now assume that she wants her retirement income to grow at the rate of inflation throughout her retirement years and that she currently has $250,000 in the same investment vehicle that she plans to keep making deposits into.
Please read the full conversation. the second paragraph is the main question. Also, it is important to answer in detail.
Place an order in 3 easy steps. Takes less than 5 mins.