You are attempting to plan your retirement. You know that you will need to fund twenty...
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You are attempting to plan your retirement. You know that you will need to fund twenty years of retirement because of the history of longevity in your family. You currently earn $65,000 per year and would like to maintain your lifestyle in retirement. You want the first arrears annuity payment in retirement one year from today. You are absolutely certain that the nominal per annum, interest rate for your annuity will be 4.4% p.a. You have also determined that the per annum rate of inflation over the next 20 years will be 2%. How much money will the arrears retirement annuity cost in today's dollars (remember, you want to maintain the purchasing power of $65,000 per year). You are attempting to plan your retirement. You know that you will need to fund twenty years of retirement because of the history of longevity in your family. You currently earn $65,000 per year and would like to maintain your lifestyle in retirement. You want the first arrears annuity payment in retirement one year from today. You are absolutely certain that the nominal per annum, interest rate for your annuity will be 4.4% p.a. You have also determined that the per annum rate of inflation over the next 20 years will be 2%. How much money will the arrears retirement annuity cost in today's dollars (remember, you want to maintain the purchasing power of $65,000 per year).
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Related Book For
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
Posted Date:
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