Question

Thelma and Timothy have a retirement savings goal of $1,500,000. They are planning for a retirement...

Thelma and Timothy have a retirement savings goal of $1,500,000. They are planning for a retirement lasting 30 years. They would like to retire in 27 years. The combined total of their retirement accounts is $90,000 today. They assume their portfolio can earn 6 percent over time and that inflation will average 2.5% annually. How much will they need to save at the end of each year to meet their retirement goal? A. $18,435. B. $15,785. C. $12,430. D. $17,730. E. $29,550.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Hence, Please select nearest option $29,550

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Vincent would like to have $50,000 per year to live off in his retirement. He expects...
Vincent would like to have $50,000 per year to live off in his retirement. He expects to retire on his 65th birthday, make his first retirement withdrawal on his 66th birthday, and to live until his 85th birthday. He is celebrating his 30th birthday today and will make his first savings deposit one year from today. If he can earn 4% per year on his savings, the amount he must save each year to meet his goal, with the last...
A young couple, both 25 years old, are planning to retire in 40 years at the...
A young couple, both 25 years old, are planning to retire in 40 years at the age of 65. After they retire, they expect to live for an additional 20 years, until age 85. They plan to begin saving for retirement today and based on information from their financial planner, they think they will earn 8% on their investment compounded annually. They think they will earn 5% on their retirement savings after they retire. 1. If they begin at age...
Over your 40-year working career, you are planning to be diligent in planning for retirement. You...
Over your 40-year working career, you are planning to be diligent in planning for retirement. You estimate that you will start working at age 25, retire at 65, and need $100,000/year to live on in retirement for 25 additional years (until age 90). 8a) Assuming a TVOM of 8%, what do you need to uniformly annually invest to meet this goal over 40 years? 8b) What about if you wait 20 years and start investment at age 45? How much...
You currently have $1,426 in a retirement savings account that earns an annual return of 11.00%....
You currently have $1,426 in a retirement savings account that earns an annual return of 11.00%. You want to retire in 38 years with $1,000,000. How much more do you need to save at the end of every year to reach your retirement goal?
Suppose you have determined that you want to have retirement savings of $5,000,000 when you retire...
Suppose you have determined that you want to have retirement savings of $5,000,000 when you retire at age 65, 42 years after you graduate, at age 23. Looking at the long history of the market, you are confident that you can earn at 10% per annum on a well-diversified equity portfolio. a) Calculate much would you have to save annually at the end of each year for the next 42 years to reach your $5,000,000 goal assuming a 10% annual...
Suppose you have determined that you want to have retirement savings of $5,000,000 when you retire...
Suppose you have determined that you want to have retirement savings of $5,000,000 when you retire at age 65, 42 years after you graduate, at age 23. Looking at the long history of the market, you are confident that you can earn at 10% per annum on a well-diversified equity portfolio. a) Calculate much would you have to save annually at the end of each year for the next 42 years to reach your $5,000,000 goal assuming a 10% annual...
Your father is 50 years old and will retire in 10 years. He expects to live...
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 $40,000 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, at which time he will receive 24...
our father is 50 years old and will retire in 10 years. He expects to live...
our 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 $60,000 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, at which time he will receive 24...
Your father is 50 years old and will retire in 10 years. He expects to live...
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 $40,000 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, at which time he will receive 24...
Your father is 50 years old and will retire in 10 years. He expects to live...
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 $45,000 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, at which time he will receive 24...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT