Question
You believe you will need to have saved $500,000 by the time you retire in 40 years in order to live comfortably. You also believe
| You believe you will need to have saved $500,000 by the time you retire in 40 years in order to live comfortably. You also believe that you will inherit $100,000 in 10 years. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.) |
| If the interest rate is 6% per year, what is the future value of your inheritance at retirement? |
| Future value | $ |
| How much must you save each year to meet your retirement goal? (Assume you save your entire inheritance. This is the amount needed in addition to the inheritance.) |
| Annual savings required | $ |
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