A couple thinking about retirement decide to put aside $3,600 each year in a savings plan that earns 8% interest. In 5 years they will receive a gift of $16,000 that also can be invested. a. How much money will they have accumulated 30 years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Accumulated savings es b. If their goal is to retire with $860,000 of savings, how much extra do they need to save every year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Additional annual savings needed
A couple thinking about retirement decide to put aside $3,600 each year in a savings plan that earns 8% interest. In 5 years they will receive a gift of $16,000 that also can be invested. a. How much money will they have accumulated 30 years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Accumulated savings es b. If their goal is to retire with $860,000 of savings, how much extra do they need to save every year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Additional annual savings needed
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 23P
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Transcribed Image Text:A couple thinking about retirement decide to put aside $3,600 each year in a savings plan that
earns 8% interest. In 5 years they will receive a gift of $16,000 that also can be invested.
a. How much money will they have accumulated 30 years from now? (Do not round
intermediate calculations. Round your answer to 2 decimal places.)
Accumulated savings
es
b. If their goal is to retire with $860,000 of savings, how much extra do they need to save
every year? (Do not round intermediate calculations. Round your answer to 2 decimal
places.)
Additional annual savings needed
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