Question
A couple will retire in 50 years; they plan to spend about $30000 a year in retirement, which should last about 25 years.They believe that
A couple will retire in 50 years; they plan to spend about $30000 a year in retirement, which should last about 25 years.They believe that they can earn 8% interest on retirement savings.
a.How much will they need to have saved by the time they retire?
b. 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.
c. The couple now realizes that they prefer to do their savings on a monthly basis.If they can earn 8% interest compounded monthly, calculate the monthly savings needed to save for their retirement ($2500 per month).
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Accounting
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
9th edition
1118608224, 1118608227, 730323994, 9780730323990, 730319172, 9780730319177, 978-1118608227
