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Craig MacKinlay wants to save money to meet three objectives: 1. He would like to retire 30 years from now and spend $17,500 per month
Craig MacKinlay wants to save money to meet three objectives: 1. He would like to retire 30 years from now and spend $17,500 per month for 25 years in retirement. Withdrawals occur at the end of each month. 2. He would like to purchase a cabin in Lake of Woods in western Ontario at the start of the 11th year for $345,000. 3. After he passes on at the end of the 25 years of withdrawals, he would like to leave an inheritance of $2,000,000 to his son Andrew. He will save $2,350 per month (at the end of each month) for the next 10 years. Assume he will save the same amount every month at the end of each month for years 11 through 30. He can earn an EAR of 10% before he retires and an EAR of 7% after he retires. How much will he have to save each month in years 11 through 30
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