Chapter 4 Problems (30 31)30. You are saving for retirement. To live comfortabl

    0

    Chapter 4 Problems (30 31)30.
    You are saving for retirement. To live comfortably you decide you will
    need to save $2 million by the time you are 65. Today is your 30th
    birthday and you decide starting today and continuing on every
    birthday up to and including your 65th birthday that you will put the
    same amount into a savings account. If the interest rate is 5% how much
    must you set aside each year to make sure that you will have $2 million
    in the account on your 65th birthday?31. You realize that the
    plan in Problem 30 has a flaw. Because your income will increase over
    your lifetime it would be more realistic to save less now and more
    later. Instead of putting the same amount aside each year you decide to
    let the amount that you set aside grow by 7% per year. Under this plan
    how much will you put into the account today? (Recall that you are
    planning to make the first contribution to the account today.)

                                                                                                                                      Order Now