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stranahan stranahan
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7 years ago
You have won the lottery and received a check for $1,275,156 today. You invest the lottery check today at an annual interest rate of 8% and allow it to build for a full ten years. At that point in time, you shift the money to an account paying only 6% per year. You plan to spend $175,000 per year in retirement (assume equal annual end-of-the-year cash flows) for 30 years, and your first retirement cash flow is exactly eleven years from today. Will you have enough money to fully fund your desired retirement? Use a calculator to determine your answer.
A) Yes, because your investment will allow you to spend up to $200,000 per year in retirement.
B) Yes, because your investment will allow you to spend up to $225,000 per year in retirement.
C) No, because your investment will allow you to spend up to only $137,000 per year in retirement.
D) No, because your investment will allow you to spend up to only $158,000 per year in retirement.
Textbook 
Financial Management: Core Concepts

Financial Management: Core Concepts


Edition: 2nd
Author:
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UnluckyGirlXOXUnluckyGirlXOX
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7 years ago
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stranahan Author
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Thanks Smiling Face with Open Mouth and Tightly-closed Eyes
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ty
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thanks
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Thank you!
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