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I need help with these ten problems. Any assistance completing them would be appreciated. Thanks!! Charles and Charlotte are both 37 years old and have

I need help with these ten problems. Any assistance completing them would be appreciated. Thanks!! image text in transcribed
Charles and Charlotte are both 37 years old and have two children. Charles makes $70,000 and Charlotte makes $40,000 per year They have gathered the following information: -Their expected portfolio rate of return is 8.5% They want to retire at 67 with 80% of their pre-retirement income. They expect to live to age 95. -They expect that Social Security will provide $24,000 to him and $20,000 to her at normal retirement of 67 They want to send their children to a state university. The current education inflation rate is 6%. The current cost per year is S20.000, the children are expected to attend school for 5 years. the children are ages 8 and 6 and will start college at age 18. They have $150,000 in investment assets and cash and cash equivalents They have no interest in moving or refinancing their home. -At retirement, they want to buy a specialized RV to travel. The current cost is $250,000 and is expected to increase with general inflation of 3%. They are currently saving $11,000 per year for retirement (Charles: $7,000, Charlotte 4,000) and have employer matches of S3.300 total (3% maximum match) for a total of $14,300 annually The general inflation rate is expected to be 3% Charles and Charlotte would like to know I. Assuming a 3% inflation rate, what will be the costs of RV when they turn 67? 2. What amount do they need to invest today in a single sum, to be able to afford the RV at age 677 Base your answer on their 8.5% investment rate of return. 3. What are the costs of a five-year college education for a child? 4. What is the present value, as of today, of the college expenses identified in #37 Use both the education inflation rate and the investment rate of return basedon the equation in #3 to calculate the present value of the education goal. Calculate the present value for both the 8-year-old and the 6-year-old child. 5. If they were to retire today, what are their annual needs during retirement, considering that they plan to live on 80% of their current income and expect to receive Social Security payments? 6. Assuming a 3% inflation, what will be their annual needs when they retire? 7, Assuming a 3% inflation rate and an 8.5% investment rate of return, what amount do they need to have accumulated at age 67 to meet their annual needs as identified in #67 8. What is the present value today, at age 37, of the retirement nest egg that they will need at age 67? Use the investment rate of return of 8.5%; ignore inflation. 9. What is the sum of all three long-term goals (RV, education, retirement) in present value terms? 10. The couple currently has $150,000 in investment assets and cash and cash equivalents. Is this amount sufficient to accomplish their long-term plans

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