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missbitengoLv1
17 Jun 2021
An investor, who just turned 51, wishes to places Kes 63,356.90 in a fund at the beginning of each year for 11 years. Assume the fund earns a rate of return of 7%, compounded annually. On his 62nd birthday, the investor plans to retire from his job, and live on his savings by withdrawing equal monthly payments from his fund. The investor will make withdrawals forever, every month [with payments will go to his kids when he dies, and his kids’ kids after that, and so on]. Assume after he is 62, the fund is transferred to more conservative investments with a guaranteed annual rate of 4.08% compounded monthly. Please calculate the amount of the withdrawal this investor can make starting at age 62.
An investor, who just turned 51, wishes to places Kes 63,356.90 in a fund at the beginning of each year for 11 years. Assume the fund earns a rate of return of 7%, compounded annually. On his 62nd birthday, the investor plans to retire from his job, and live on his savings by withdrawing equal monthly payments from his fund. The investor will make withdrawals forever, every month [with payments will go to his kids when he dies, and his kids’ kids after that, and so on]. Assume after he is 62, the fund is transferred to more conservative investments with a guaranteed annual rate of 4.08% compounded monthly. Please calculate the amount of the withdrawal this investor can make starting at age 62.
