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Retirement Planning and Investment Analysis

Plan for your retirement in 10 years with savings and investments. Calculate future value, post-retirement withdrawals, and investment growth. Analyze compound interest rates and financial strategies.

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Retirement Planning and Investment Analysis

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  1. Assignment due on 6 Aug • (Comprehensive present value) You are trying to plan for retirement in 10 years and currently you have $100,000 in savings account and $300,000 in stocks. In addition, you plan to add to your savings by depositing $10,000 per year in your savings account at the end of each of the next five years and then $20,000 per year at the end of each year for the final five years until retirement. • Assuming your savings account returns 7% compounded annually and your investment in stocks will return 12% compounded annually, how much will you have at the end of 10 years? Ignore taxes. • If you expect to live for 20 years after you retire, and at retirement you deposit all of your savings in a bank account paying 10%, how much can you withdraw each year after retirement (20 equal withdrawals beginning one year after you retire) to end up with a zero balance at death? • How many years would it take for your investment to grow fourfold if it were invested at 16% compounded semi-annually?

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