Question
Peter and Blair recently reviewed their future retirement income and expense projections. They hope to retire in 28 years and anticipate they will need funding
Peter and Blair recently reviewed their future retirement income and expense projections. They hope to retire in 28 years and anticipate they will need funding for an additional 19 years. They determined that they would have a retirement income of $57,000 in today's dollars, but they would actually need $78,735 in retirement income to meet all of their objectives. Calculate the total amount that Peter and Blair must save if they wish to completely fund their income shortfall, assuming a 2 percent inflation rate and a return of 11 percent. The total amount that Peter and Blair must save if they wish to completely fund their income shortfall, assuming a 2 percent inflation rate and a return of 11 percent is $_____
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