Finance Assignment | Professional Writing
1) You have just turned 22 years old, received your bachelor’s degree, and accepted your first job. Now you must decide how much money to put into your retirement plan. The plan works as follows: Every dollar in the plan earns 7.4 % per year. You cannot make withdrawals until you retire on your 65th birthday. After that, you can make withdrawals as you see fit. You decide that you will plan to live to 100 and work until you turn 65. You estimate that to live comfortably in retirement, you will need $100,000 peryear, starting at the end of the first year of retirement and ending on your 100th birthday.
You will contribute the same amount to the plan at the end of every year that you work. How much do you need to contribute each year to fund your retirement?
Your annual contribution should be $
2) You are looking to buy a car and can afford to pay $220 per month. If the interest rate on a car loan is 0.71 % per month for a 60-month loan, what is the most expensive car you can afford tobuy?
The amount that you can afford is $
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