Suppose You Are 40 Years Old and Plan to Retire

question 39

Essay

Suppose you are 40 years old and plan to retire in exactly 20 years.Twenty-one years from now you will need to withdraw $5,000 per year from a superannuation fund to supplement your finances.You expect to live to the age of 85.How much money should you place in the Super fund each year for the next 20 years to reach your retirement goal if you can earn 12% interest per year from the fund?

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Definitions:

Converse

In logic and mathematics, the converse of a statement is formed by reversing its terms and predicate, often producing a different statement.

Disjunctive Proposition

A statement that uses 'or' to connect two or more alternatives, where at least one must be true.

Categorical Proposition

A type of logical statement that asserts or denies something about all members of a category.

Hypothetical Proposition

A statement that posits a conditional scenario, typically expressed in the form "if-then."