A couple will retire in 50 years; they plan to spend about $30,000 a year in retirement,
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A couple will retire in 50 years; they plan to spend about $30,000 a year in retirement, which should last about 25 years. They believe that they can earn 10 percent interest on retirement savings.
a. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year.
b. How would the answer to part
c. change if the couple also realize that in 20 years, they will need to spend $60,000 on their child’s college education?
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