Your retirement planning suggests a goal of $57,000 a year in today's dollars for 30 years of
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Your retirement planning suggests a goal of $57,000 a year in today's dollars for 30 years of retirement. Retirement will begin 35 years from today, at which time you will expect your first annuity payment. Inflation between now and retirement is expected to be 4 percent annually (do not consider inflation during retirement). The anticipated yield over the pre retirement period is 7 percent annually, and 8 percent per annum is anticipated during retirement. Calculate how much you should set aside each year between now and retirement to achieve your goal.
AnnuityAn annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...
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Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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