Annual Earnings. Jose and Gabriela Perez, of Bridgewater, Virginia, hope to sell their large home for $380,000 and retire to a smaller residence valued at $150,000. After they sell the property, they plan to invest the $200,000 in equity remaining after selling expenses and earn a 4 percent after-tax return.

Approximately how much will this nest egg be worth in five years when they retire? Use Appendix A-1 or the Garman/Forgue companion website to solve for the answer.

AppendixLO1