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Average return of the retirement

Problem: My friend, Jane, would like to retire by December 31, 2008. She is wondering whether she can withdraw $100,000 every year forever. How much her nest egg should be assuming the average return of her retirement account is 10%? Would you help her to figure it out?

What present value formula would you use to figure out the answer?

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Finance Basics: Average return of the retirement

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Average return of the retirement

Reference No:- TGS01451486

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Volatility of short-and long-term interest rates

Q : Effective internal control techniques

Q : Strengths-weaknesses of organizations financial position

Q : Cost-of-living adjustment to the pensions

Q : Average return of the retirement

Q : Impact the domestic price of u.s. made steel

Q : Monopolistic competition model

Q : Price of the company product equals marginal cost

Q : Computing the expected return and standard deviation

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Average return of the retirement

Reference No:- TGS01451486

Recent Questions Asked Finance Basics

Q : Volatility of short-and long-term interest rates

Q : Effective internal control techniques

Q : Strengths-weaknesses of organizations financial position

Q : Cost-of-living adjustment to the pensions

Q : Average return of the retirement

Q : Impact the domestic price of u.s. made steel

Q : Monopolistic competition model

Q : Price of the company product equals marginal cost

Q : Computing the expected return and standard deviation

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