Question

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 additional annual
payments. Annual inflation is expected to be 6%. He currently has
$190,000 saved, and he expects to earn 9% 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?

Answer #1

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 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 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...

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 $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 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 $55,000 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 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 $50,000 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 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 $55,000 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 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 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 $55,000 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...

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