Extra Credit 1 H through O

Extra Credit 1 H - receive 24 additional annual payments Annual inflation is expected to be 3 He currently has $145000 saved and he expects to earn

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Nikhita Kaul Extra Credit #1 Probl em 2-39. Required annuity payments Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $45000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today; and he will then
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Unformatted text preview: receive 24 additional annual payments. Annual inflation is expected to be 3%. He currently has $145000 saved, and he expects to earn 7% annually on his savings. How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal? Round your answer to the nearest cent. _________ Problem 2-39: R = 45000 G = 3% i = 7% n = 25 Answer: $4234.06 per year...
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This note was uploaded on 03/05/2010 for the course BMGT 364 taught by Professor -- during the Spring '10 term at UMBC.

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