When you wish to retire in 12 years and currently have $50,000 in a savings account yielding 5 percent annually and $100,000 in quality “blue chip” stocks yielding 10 percent. If you expect to add $30,000 at the end of each year to your stock portfolios, how much will you have in your retirement fund when you retire? What rate return must earn on your retirement fund if you retire? What rate must you earn on your retirement funds if you want to withdraw $102,000 per year for the next 15 years after retiring?

An investment generates $10,000 per year for 25 years. If you can earn 10 percent on other investments, what is the current value of this investment? If it’s current price is $120,000, should you buy it?

When you wish to retire in 12 years and currently have $50,000 in a savings account yielding 5 percent annually and $100,000 in quality “blue chip” stocks yielding 10 percent. If you expect to add $30,000 at the end of each year to your stock portfolios, how much will you have in your retirement fund when you retire? What rate return must earn on your retirement fund if you retire? What rate must you earn on your retirement funds if you want to withdraw $102,000 per year for the next 15 years after retiring?