Outline a program for your own retirement. In the process of writing this paper answer the following questions. You will need to state your assumptions about interest and inflation rates.
- What monthly amount of money today would provide you a comfortable living?
- Using the answer to part a project that amount to your retirement, calculating the
effects of inflation. Use your own age and assume that you will retire at age 65.
- How much money would you need to have accumulated to provide the amount you
found in part b if you decide to live on the interest only?
- If you set up a sinking fund to provide the amount you found in part c, how much
would you need to deposit each month?
- Offer some alternatives to a sinking fund.
- Draw some conclusions about your retirement. There are a multitude of sites to help with retirement planning. Here is a sample:
Suppose you were hired for a job paying $21,000 per year and were given the following options:
Option A: Annual salary increase of $1,200.
Option B: Semiannual salary increase of $300.
Option C: Quarterly salary increase of $75.
Option D: Monthly salary increase of $10.
Write the arithmetic series for the total amount of money earned in 10 years under a different option. Which is the best option? Give reasons and show your calculations in the paper that you submit.