Essay
You have just graduated with an MBA degree and accepted your first job at the age of 25.You are thinking ahead for early retirement and you plan on saving $5000 at the end of each year.You expect each year's return to be modeled as a normal distribution with a mean of 10% and standard deviation of 2.5%.Suppose you intend to retire at the age of 55.Use Crystal Ball to simulate the ending investment value.Use 1000 replications.
a.What is the average amount of money that you will have at retirement?
b.What is the probability of having more than $1,000,000 at retirement?
Correct Answer:
Verified
Correct Answer:
Verified
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