Required Annuity Payments Father's current age Number of years until retirement Number of years living in...
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Required Annuity Payments Father's current age Number of years until retirement Number of years living in retirement 1st retirement payment, same purchasing power today as Inflation rate Current savings at t = 0 Percentage return earned Step 1. Calculate retirement payments, beginning at t = 10 Fixed retirement payments Step 2. Calculate the value of current savings at t = 10 Value of current savings, 10 years from today Step 3. Calculate the value of the annuity due of retirement payments at t = 10 Value of annuity due Step 4. Calculate the net amount that must be accumulated at t =10 to receive desired retirement payments Net amount needed in 10 years Step 5. Calculate the value of annual deposit needed to meet desired retirement goal Value of annual deposit to meet retirement goal 50 10 25 $35,000 6.00% $25,000 4.00% Formulas #N/A #N/A #N/A #N/A #N/A Required Annuity Payments Father's current age Number of years until retirement Number of years living in retirement 1st retirement payment, same purchasing power today as Inflation rate Current savings at t = 0 Percentage return earned Step 1. Calculate retirement payments, beginning at t = 10 Fixed retirement payments Step 2. Calculate the value of current savings at t = 10 Value of current savings, 10 years from today Step 3. Calculate the value of the annuity due of retirement payments at t = 10 Value of annuity due Step 4. Calculate the net amount that must be accumulated at t =10 to receive desired retirement payments Net amount needed in 10 years Step 5. Calculate the value of annual deposit needed to meet desired retirement goal Value of annual deposit to meet retirement goal 50 10 25 $35,000 6.00% $25,000 4.00% Formulas #N/A #N/A #N/A #N/A #N/A
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A B C Formulas 1 2 Fixed retirement payments 6267967 35000... View the full answer
Related Book For
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
Posted Date:
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