A couple just got married and they both are 25 and plan to retire at 65, in 40 years. They want 200k at the end of each year in 20 years upon retirement. Currently they have 2k cash and expect 100k as a retirement bonus at the end of the 40 years from employer. Assume interest rate is 8%.What is the present value today (when they are 25) of the annual payment of $200,000
A couple just got married and they both are 25 and plan to retire at 65, in 40 years. They want 200k at the end of each year in 20 years upon retirement. Currently they have 2k cash and expect 100k as a retirement bonus at the end of the 40 years from employer. Assume interest rate is 8%.What is the present value today (when they are 25) of the annual payment of $200,000
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter14: Planning For Retirement
Section: Chapter Questions
Problem 2FPE
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A couple just got married and they both are 25 and plan to retire at 65, in 40 years. They want 200k at the end of each year in 20 years upon retirement. Currently they have 2k cash and expect 100k as a retirement bonus at the end of the 40 years from employer. Assume interest rate is 8%.What is the present value today (when they are 25) of the annual payment of $200,000 received annually during retirement for 20 years that you calculated in the previous question?
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