Lynn Price recently completed her MBA and accepted a job with an electronics manufacturing company..

By Client

}

May 13, 2022

complete

Place your order today at 15% discount

Lynn Price recently completed her MBA and accepted a job with an electronics manufacturing company. Although she likes her job, she also is looking forward to retiring one day. To ensure that her retirement is comfortable, Lynn intends to invest $3,000 of her salary into a tax-sheltered retirement fund at the end of each year. Lynn is not certain what rate of return this investment will earn each year, but she expects that each years rate of return could be modeled appropriately as a normally distributed random variable with a mean of 12.5% and standard deviation of 2%. a. If
Lynn Price recently completed her MBA and accepted a job with an electronics manufacturing company. Although she likes her job, she also is looking forward to retiring one day. To ensure that her retirement is comfortable, Lynn intends to invest $3,000 of her salary into a tax-sheltered retirement fund at the end of each year. Lynn is not certain what rate of return this investment will earn each year, but she expects that each years rate of return could be modeled appropriately as a normally distributed random variable with a mean of 12.5% and standard deviation of 2%. a. If Lynn is 30 years old, how much money should she expect to have in her retirement fund at age 60? (Use 5000 replications.) b. Construct a 95% confidence interval for the average amount that Lynn will have at age 60. c. What is the probability that Lynn will have more than $1 million in her retirement fund when she reaches age 60? d. How much should Lynn invest each year if she wants there to be a 90% chance of having at least $1 million in her retirement fund at age 60? e. Suppose that Lynn contributes $3,000 annually to her retirement fund for eight years and then terminates these annual contributions. How much of her salary would she have contributed to this retirement plan and how much money could she expect to have accumulated at age 60? f. Now suppose that Lynn contributes nothing to her retirement fund for eight years and then begins contributing $3,000 annually until age 60. How much of her salary would she have contributed to this retirement plan and how much money could she expect to have accumulated at age 60? g. What should Lynn (and you) learn from the answers to questions e and f?

Need help with your Assignment?

Hire professional just from $9.99

Get your assignments done 100% Original, Plagiarism Free, Customized to your instructions!

How it works

1. CLICK on the ORDER NOW button.

2. Paste your instructins in the instructions box. You can also attach an instructions file.

3. Select the writer category, deadline, education level and review the instructions.

4. Make a payment for the order to be assignment to a writer.

5. Download the paper after the writer uploads it.

Will the writer plagiarize my essay?

You will get a plagiarism-free paper and you can get an originality report upon request.

 

Is this service safe?

All the personal information is confidential and we have 100% safe payment methods. We also guarantee good grades.

Read More

Related Posts

Big Essay

Place your order today at 15% discount History homework help POSSIBLE TOPICS 1 U.S.-Taliban talks or Taliban-Afghan government 2 Syrian peace talks...

It’s Your First Order?

We’ll give you a discount! You get 15% off the full price. Enjoy!

Chat Now
1
Powered by Studywix
Hello! Welcome to to our whatapp support.
We offer READY solutions, HIGH QUALITY PLAGIARISM FREE essays and term-papers.

We are online and ready to help.