Ruby is 25 and has a good job at a biotechnology company. She currently has $11,800 in an IRA, an important part of her retirement nest egg. She believes her IRA will grow at an annual rate of 9 percent, and she plans to leave it untouched until she retires at age 65. Ruby estimates that she will need $875,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $20,000 a year (she expects that Social Security will pay her an additional $15,000 a year).
Required:
a. How much will Ruby's IRA be worth when she needs to start withdrawing money from it when she retires?
b. How much money will she have to accumulate in her company's 401(k) plan over the next 40 years in order to reach her retirement income goal?
Answers: 1
Other questions on the subject: Business
Business, 21.06.2019 16:00, Virnalis1112
Which type of investment offers both capital gains and interest income? a. property b. cds c. stocks d. bonds
Answers: 2
Business, 21.06.2019 20:40, brittany7436
Astock is selling today for $50 per share. at the end of the year, it pays a dividend of $3 per share and sells for $58. a. what is the total rate of return on the stock? (enter your answer as a whole percent.) b. what are the dividend yield and percentage capital gain? (enter your answers as a whole percent.) c. now suppose the year-end stock price after the dividend is paid is $42. what are the dividend yield and percentage capital gain in this case? (negative amounts should be indicated by a minus sign. enter your answers as a whole percent.)
Answers: 1
Do you know the correct answer?
Ruby is 25 and has a good job at a biotechnology company. She currently has $11,800 in an IRA, an im...
Questions in other subjects:
Physics, 19.10.2019 06:20
History, 19.10.2019 06:20
