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Suppose that a friend has stashed away S2M toward her retirement and is adding $10K per year. If this nest egg and the n
Posted: Tue Apr 26, 2022 5:05 pm
by answerhappygod
- Suppose That A Friend Has Stashed Away S2m Toward Her Retirement And Is Adding 10k Per Year If This Nest Egg And The N 1 (225.66 KiB) Viewed 14 times
Suppose that a friend has stashed away S2M toward her retirement and is adding $10K per year. If this nest egg and the new money added is growing at 10% per year (compounded continuously), estimate the value of the retirement 10 years from now, right when the friend will be 55 years old. Assume the friend named in the previous problem retires at 55 but reduces her investment risk so that her investments grow by a rate of 5% per year (compounded continuously). If she doesn't plan to add any new money to her retirement account and, instead, needs to withdraw S100,000 each year to be used to live / travel / live-it-up-during-retirement / etc., then how many years will pass before she runs out of money? Or, will she have enough to sustain this new lifestyle?