Exercise1: (10 pts) Suppose you think about your retirement. To decide about the amount of money that you should save at
Posted: Sat Feb 26, 2022 9:04 am
- Exercise1 10 Pts Suppose You Think About Your Retirement To Decide About The Amount Of Money That You Should Save At 1 (112.43 KiB) Viewed 47 times
Exercise1: (10 pts) Suppose you think about your retirement. To decide about the amount of money that you should save at 63 years (your retirement age), you try to predict what will be the level of prices when you will have 63 years old. Taking into account different elements, you decide to save $1 000 000 at 63 years (your retirement age). To reach this target, you are making annual contributions to your retirement funds (with 7 % return) at the age of 20. a. Determine the amount of annual contributions. b. Express the required annual contribution as a function of starting age (starting age is the age when you decide to start making annual contributions). c. Based on the function (defined from b), try to interpret and to assess the “Cost of waiting