A 62-year old man is considering taking a adult education course in spreadsheets. He believes it will increase his annual income by $500 until he retires in three years. If the cost of the course is $1,200 and the discount rate is 5%, should he take the course?

A 62-year old man is considering taking a adult education course in spreadsheets. He believes it will increase his annual income by $500 until he retires in three years. If the cost of the course is $1,200 and the discount rate is 5%, should he take the course?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 44P

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Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.

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