Problem related to time value of money


Assignment:

1. Go to CNN Money and complete the planner with your personal information. Include the information that you put on the left and the results from the right.

2. Answer the following 2 questions using time value of money (your financial calculator or Excel including inputs).

· I can only put away $2,000 a year toward retirement. I am 25 and plan on retiring at 65 and earning 5%. How much will I have at retirement?

· I want to be able to have $50,000 a year during retirement. I want to make sure that I can have it until I am 100 years old. I plan to retire at 65. I can earn 5%. How much do I need to have at retirement to be able to make it?

 

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Financial Accounting: Problem related to time value of money
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