Investments will yield an annual rate of return

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Suppose that you are 45 years old. You figure that your income will be such that you will be able to save for the next 10 years, until age 55. At age 55, your income will just cover your expenses. Finally, you expect to retire at age 65 and live until age 80. Suppose that you want to guarantee yourself income of $50,000 per year after retirement. How much should you put away every year, for the next 10 years, starting at the end of this year? Assume that your investments will yield an annual rate of return r = 12%.

Reference no: EM131383937

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