Retirement Savings. A couple thinking about retirement decide 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. (LO5-3) a. How much money will they have accumulated 30 years from now? b. If their goal is to retire with $800,000 of savings, how much extra do they need to save every year?
Retirement Savings. A couple thinking about retirement decide 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. (LO5-3) a. How much money will they have accumulated 30 years from now? b. If their goal is to retire with $800,000 of savings, how much extra do they need to save every year?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 6E
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Transcribed Image Text:45. Retirement Savings. A couple thinking about retirement decide 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. (LO5-3)
a. How much money will they have accumulated 30 years from now?
b. If their goal is to retire with $800,000 of savings, how much extra do they need to save every
year?
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