Eleanor needs 40000 a year to live on in retirement net of, Ask an Expert

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Eleanor needs $40,000 a year to live on in retirement net of the income she will receive. She will be retiring in 22 years and is funding for a 25-year retirement. The inflation rate is expected to be 3.5 percent a year and the after-tax return on her investments 6 percent.

a) How much will she fall short to at the beginning of the retirement period?

b) What lump sum will she need at the beginning of the retirement period?

c) What is the required yearly savings?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92759488

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