1. What would be the yearly earnings for a person with $18000 in savings at an annual interest rate of 16.6% percent?
(Round your answer to the nearest whole number. Do not include the comma, period, and "$" sign in your response.)
2. Jordan is 55 and wants to retire in 12 years. His family has a history of living well into their 90s. Therefore, he estimates that he will live to age 97. He currently has a salary of $100,000 and expects that he will need about 82% of that amount annually if he were retired. He can earn 9 percent in his portfolio and expects inflation to continue at 3 percent. Jordan currently has $325,000 invested for his retirement. His Social Security benefit in today’s dollars is $30,000 per year at normal age retirement of age 67. How much does he need to save each year at year end to meet his retirement goals?
1. $6,245.
2. $7,659.
3. $8,432.
4. $9,252.