Question
A couple will retire in 50 years; they plan to spend about $38,000 a year in retirement, which should last about 25 years. They believe
A couple will retire in 50 years; they plan to spend about $38,000 a year in retirement, which should last about 25 years. They believe that they can earn 9% 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.(Do not round intermediate calculations. Round your answer to 2 decimal places.)
Annual savings?
b.How would the answer to part (a) change if the couple also realize that in 20 years they will need to spend $68,000 on their child's college education?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
Annual savings?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
