Calculating time value of money

Reference no: EM1327368

Your annual salary is $100,000. Every year for the next 30 years you plan to save 10 percent of your salary and invest it in the stock market at an expected return of 9 percent per year.

1. How much will you have in your account at the end of 30 years if your salary grows at 4 percent per year?

2. How much can you withdraw every year for 20 years following retirement assuming there's nothing left in the account at the end of those 20 years?

3. How much can you withdraw every year for 20 years following retirement assuming you want to leave $100,000 for your children at the end of those 20 years?

Reference no: EM1327368

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