Assume That You Are 30 Years Old Today,and That You

question 61

Essay

Assume that you are 30 years old today,and that you are planning on retiring at age 65.Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work.To save for your retirement,you plan on making annual contributions to a retirement account.Your first contribution will be made on your 31^st birthday and will be 8% of this year's salary.Likewise,you expect to deposit 8% of your salary each year until you reach age 65.At retirement (age 65)you will begin withdrawing equal annual payments to pay for your living expenses during retirement (on your 65th birthday).If you expect to die one day before your 101st birthday (Your last withdraw will be on your 100th birthday)and if the annual rate of return is 7%,then how much money will you have to spend in each of your golden years of retirement?

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Definitions:

Family's Environment

The physical, social, and psychological conditions within a family household that influence its members' well-being and development.

Nurturing

Offering care and support for someone's growth or development, often associated with providing a loving and supportive environment.

Risk-Taking Behavior

Risk-Taking Behavior involves engaging in actions that expose an individual to a certain level of danger or risk, often evaluated in psychological and health-related contexts.

Adolescent

A young person in the stage of development between childhood and adulthood, generally ranging from puberty to legal adulthood.