A client wants to retire in 20 years and expects to enjoy retirement for at least 25 years. They will need a cash flow of $70,000 per years (occur at the end of each year). They started investing $15,000 per year five years ago and will continue to do so for 20 more years. How much more will they have to invest each year for the next 20 years to have the necessary funds for their retirement? interest for calculating is 5%.

A client wants to retire in 20 years and expects to enjoy retirement for at least 25 years. They will need a cash flow of $70,000 per years (occur at the end of each year). They started investing $15,000 per year five years ago and will continue to do so for 20 more years. How much more will they have to invest each year for the next 20 years to have the necessary funds for their retirement? interest for calculating is 5%.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 39P

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