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Posted by: Homeworkhelp
Price Quoted by Student: $3
Posted On: 2010-12-17 06:06:50
 
Question

32. IRA investments develops retirement programs for individuals. You are 30 years old and plan to retire on your 60th birthday

Time value money

Chapter 5

Financial management

32. IRA investments develops retirement programs for individuals. You are 30 years old and plan to retire on your 60th birthday. You want to establish a plan with IRA that will require a series of equal, annual, end-of-year deposits into the retirement acct. The first deposit will be made 1 year from today on your 31st birthday. The final payment on the acct will be made on your 60th birthday. The retirement plan will allow you to withdraw $120k per year for 15 years with the first withdrawal on your 61st birthday. Also at the end of the 15 year you wish to withdraw an additional $250k. The retirement account promise to earn 12% annually.

What periodic payments must be made into the account to achieve your retirement objective?


Solutions
Amount needed in account after final deposit on yo
Price $3
Attachment 1: IRA investments develops.doc
Solution Posted By: Homeworkhelp    Posted on: 17-12-2010