Question
Victor and Maria Hernandez Try to Catch Up on Their Investments The expenses associated with sending two children through college prevented Victor and Maria Hernandez
Victor and Maria Hernandez Try to Catch Up on Their Investments The expenses associated with sending two children through college prevented Victor and Maria Hernandez from adding substantially to their investment program. Now that their younger son, Joseph, has completed school and is working full time. They would like to build up their investments quickly. Victor is 47 years old and wants to retire early, perhaps by age 60. In addition to the retirement program at his place of employment, Victor believes that their investment portfolio, currently valued at $128,000, will need to triple to $384,000 by his planned retirement time, in 13 years. He and Maria realize that they will have to sacrifice a lot of current spending to save and invest for retirement.
If they assume a 5 percent annual return, how much do the Hernandezes need to invest each year to reach their goal of $186,000? Use Appendix A.3 or visit the Garman/Forgue companion website. Round your answer to the nearest dollar. Round Future Value of a Series of Equal Amounts in intermediate calculations to four decimal places
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