You believe you will need to have saved $593,000 by the time you retire in 30 years in order to live comfortably. You also believe that you will inherit $113,000 in 5 years.1) If the interest rate is 7% per year, what is the future value of your inheritance at retirement? 2) How much additional money must you save to meet your retirement goal, assuming you save your entire inheritance?

Present value is an estimate of the present value of future cash values that may be received at a…

Answered: You believe you will need to have saved…

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter16: Real Estate And High-risk Investments

Section: Chapter Questions

Problem 2FPC

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You believe you will need to have saved $593,000 by the time you retire in 30 years in order to live comfortably. You also believe that you will inherit $113,000 in 5 years.

If the interest rate is 7% per year, what is the future value of your inheritance at retirement?

How much additional money must you save to meet your retirement goal, assuming you save your entire inheritance?

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