Tõnu has two financial goals. His first wish is to retire 40 years from now and receive a pension of 10,000 euros every month for 20 years. Secondly, his big desire is to leave an inheritance of 1,000,000 euros to his daughter Karin after his death, which will occur exactly 20years after retiring. It is known that for the first 10 years starting from today, Tõnu can save a maximum of 1,200 euros each month. Assume, that the interest rate is 6% per year (or 0.5% per month), and it does not change over the entire observed period. Question: Given all the previous information, try to find out how much Tõnu needs to save additionally each month after the first 10 years have passed?
Tõnu has two financial goals. His first wish is to retire 40 years from now and receive a pension of 10,000 euros every month for 20 years. Secondly, his big desire is to leave an inheritance of 1,000,000 euros to his daughter Karin after his death, which will occur exactly 20years after retiring. It is known that for the first 10 years starting from today, Tõnu can save a maximum of 1,200 euros each month. Assume, that the interest rate is 6% per year (or 0.5% per month), and it does not change over the entire observed period. Question: Given all the previous information, try to find out how much Tõnu needs to save additionally each month after the first 10 years have passed?
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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Tõnu has two financial goals. His first wish is to retire 40 years from now and receive a pension of 10,000 euros every month for 20 years. Secondly, his big desire is to leave an inheritance of 1,000,000 euros to his daughter Karin after his death, which will occur exactly 20years after retiring. It is known that for the first 10 years starting from today, Tõnu can save a maximum of 1,200 euros each month. Assume, that the interest rate is 6% per year (or 0.5% per month), and it does not change over the entire observed period. Question: Given all the previous information, try to find out how much Tõnu needs to save additionally each month after the first 10 years have passed?
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