Please use the following information for the next two questions.
Meryl is 30 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $8,500 per year, and her financial advisor advises her to invest in the stock market, which the financial advisor expects to provide an average return of 10% in the future.
If Meryl follows her financial advisor's advice, how much money will she have at 65?
a. $4,726,821.57
b. $2,303,707.13
c. $3,400,309.42
d. $1,378,819.34
Meryl expects to live for 20 years after she retires at 65. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after her retirement at 65?
a. $270,592.58
b. $399,387.32
c. $161,955.60
d. $555,210.69
