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You believe you will need to have saved $665,000 by the time you retire in 40...

You believe you will need to have saved $665,000 by the time you retire in 40 years in order to live comfortably. You also believe that you will inherit $118,000 in 10 years. (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?

How much additional money must you save to meet your retirement goal, assuming you save your enture inheritance?

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Answer #1

As the future value of inheritance at retirement itself is greater than the goal required ie $ 665,000, no additional savings money is required to reach the goal as inheritance amount shall take care of the required amount if saved at rate of 6%.

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Formulae as above

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