Question

Peter and Blair recently reviewed their future retirement income and expense projections. They hope to retire...

Peter and Blair recently reviewed their future retirement income and expense projections. They hope to retire in 25 years and anticipate they will need funding for an additional 14 years. They determined that they would have a retirement income of ​$49,000,000 in​ today's dollars, but they would actually need

​$69,654 in retirement income to meet all of their objectives. Calculate the total amount that Peter and Blair must save if they wish to completely fund their income​ shortfall, assuming a 3 percent inflation rate and a return of 8 percent. Click on the table icon to view the FVIF table. Click on the table icon to view the PVIFA table.

The total amount that Peter and Blair must save if they wish to completely fund their income​ shortfall, assuming a 2 percent inflation rate and a return of 8 percent is __________.

​(Round to the nearest​ cent.)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Peter and Blair recently reviewed their future retirement income and expense projections. They hope to retire...
Peter and Blair recently reviewed their future retirement income and expense projections. They hope to retire in 34 years and anticipate they will need funding for an additional 22 years. They determined that they would have a retirement income of ​$63,000 in​ today's dollars, but they would actually need ​$87,543 in retirement income to meet all of their objectives. Calculate the total amount that Peter and Blair must save if they wish to completely fund their income​ shortfall, assuming a...
Peter and Blair recently reviewed their future retirement income and expense projections. They hope to retire...
Peter and Blair recently reviewed their future retirement income and expense projections. They hope to retire in 26 years and anticipate they will need funding for an additional 15 years. They determined that they would have a retirement income of ?$49,000 in? today's dollars, but they would actually need ?$67,571 in retirement income to meet all of their objectives. Calculate the total amount that Peter and Blair must save if they wish to completely fund their income? shortfall, assuming a...
Peter and Blair recently reviewed their future retirement income and expense projections. They hope to retire...
Peter and Blair recently reviewed their future retirement income and expense projections. They hope to retire in 30 years and anticipate they will need funding for an additional 22 years. They determined that they would have a retirement income of $54,000 in​ today's dollars, but they would actually need ​$78,244 in retirement income to meet all of their objectives. Calculate the total amount that Peter and Blair must save if they wish to completely fund their income​ shortfall, assuming a...
You are planning for a very early retirement. You would like to retire at age 40...
You are planning for a very early retirement. You would like to retire at age 40 and have enough money saved to be able to draw $210,000 per year for the next 40 years​ (based on family​ history, you think​ you'll live to age 80​). You plan to save for retirement by making 20 equal annual installments​ (from age 20 to age​ 40) into a fairly risky investment fund that you expect will earn 10​% per year. You will leave...
Carol has an additional retirement need of $30,000 annually in today's dollars. She will retire in...
Carol has an additional retirement need of $30,000 annually in today's dollars. She will retire in 15 years and projects a retirement period of 20 years. Carol believes she can achieve a 6% after-tax rate of return and is assuming a 4% annual rate of inflation. Using the level payment approach, how much will Carol need to save in a single annual payment at the end of each year to fund her retirement need? 38,973.65 B) $36,767.56 C) $34,044.67 D)...
You are 35 years old, and have not saved any money yet. You hope to retire...
You are 35 years old, and have not saved any money yet. You hope to retire at age 65, with a sustainable income of $150,000 per year of current buying power. You assume that inflation will be 3.1% and the fund you want to invest in will return 8.49% per year from now until your death. a) What is your real rate of return? _____ b) How much money do you need in today's dollars to reach your income goal?...
Tom and Sharon Stieglitz plan to retire in 32 years. They estimate that their retirement income...
Tom and Sharon Stieglitz plan to retire in 32 years. They estimate that their retirement income needs is 75% of the $80,000 current level of annual household expenditures and they will live in retirement for 38 years. They expect to receive annual social security benefits $21,000, annual employer pension funds $13,000, and no other retirement income sources. They are comfortable of getting 8.5% return on their investment before retirement and a 6% return on their assets after retirement. Assuming a...
Joetta Hernandez is a single parent with two children and earns ​$56,500 a year. Her​ employer's...
Joetta Hernandez is a single parent with two children and earns ​$56,500 a year. Her​ employer's group life insurance policy would pay 2.5 times her salary. She also has ​$75,333 saved in a​ 401(k) plan, ​$6,278 in mutual​ funds, and a ​$3,767 CD. She wants to purchase term life insurance for 15 years until her youngest child is​ self-supporting. She is not concerned about her outstanding​ mortgage, as the children would live with her sister in the event of​ Joetta's...
Assume that you plan to retire in 45 years and that you estimate you will need...
Assume that you plan to retire in 45 years and that you estimate you will need an income of $200,000 on the day you retire and an equivalent amount, adjusted for inflation, at the beginning of each year for a total of 35 years. You will take a world-wide cruise 10 years after you retire and estimate the cost to be $100,000. Assume that you will earn 12.00 percent during your working years and 6.00 percent after you retire. You...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT