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You tried to sneak a cappuccino into the movie theatre. It spilled on your leg and scalded you. Your lawyer says that you can expect
You tried to sneak a cappuccino into the movie theatre. It spilled on your leg and scalded you. Your lawyer says that you can expect a payout from the coffee shop's insurance company of $10,000 per year for 12 years. The only catch is that the first payment won't happen until the court case is over in 2 years. What is the present value of your settlement as of today? Assume an interest rate of 2.7%. The present value of the future payments is $ (Round to the nearest cent.) You are 30 years old today. You want to retire at the age of 55. You expect to live until age 85. You would like to have a monthly income of $12,000 per month in retirement. How much do you have to save per month during your working years in order to achieve your retirement goal? Assume end of period payments. Assume an annual interest rate of 2% in retirement and 4.5% during your working life. How much do you have to save per month during your working years in order to achieve your retirement goal? (Round to the nearest cent.)
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