#45 Retirement savings A couple thinking about retirement decides to put aside $3,000 each year in a savings plan that earns 8% interest. In 5 years, they will receive a gift of $10,000 that also can be invested. a. How much money will they have accumulated 30 years from now?b. If the goal is to retire with $800,000 savings, how much extra do they need to save every year?
#45 Retirement savings A couple thinking about retirement decides to put aside $3,000 each year in a savings plan that earns 8% interest. In 5 years, they will receive a gift of $10,000 that also can be invested. a. How much money will they have accumulated 30 years from now?b. If the goal is to retire with $800,000 savings, how much extra do they need to save every year?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 39P
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#45 Retirement savings
A couple thinking about retirement decides to put aside $3,000 each year in a savings plan that earns 8% interest. In 5 years, they will receive a gift of $10,000 that also can be invested.
a. How much money will they have accumulated 30 years from now?
b. If the goal is to retire with $800,000 savings, how much extra do they need to save every year?
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