Suppose you plan on retiring at the age of 35 (early retirement woooooooo!) and expect to live another 45 years to the a
Posted: Mon May 30, 2022 8:02 am
Suppose you plan on retiring at the age of 35 (early retirement
woooooooo!) and expect to live another 45 years to the age of
80. You estimate that you can comfortably live on an
allowance of $4,000 per month (including housing
and medical expenses) while not working in retirement. If you
wanted to purchase an annuity that would make monthly payments of
$4,000 to cover your monthly allowance for the
45 years of your retirement, approximately how much money would you
need to have saved by the time you are 35 in order to purchase such
an annuity if the annuity pays an APR of 3.6%?
Group of answer choices
$500,000
$100,000
$1 million
$2.2 million
woooooooo!) and expect to live another 45 years to the age of
80. You estimate that you can comfortably live on an
allowance of $4,000 per month (including housing
and medical expenses) while not working in retirement. If you
wanted to purchase an annuity that would make monthly payments of
$4,000 to cover your monthly allowance for the
45 years of your retirement, approximately how much money would you
need to have saved by the time you are 35 in order to purchase such
an annuity if the annuity pays an APR of 3.6%?
Group of answer choices
$500,000
$100,000
$1 million
$2.2 million