• You plan to retire in 30 years. • In 50 years, you want to give your daughter a $500,000 gift. • You will receive an inheritance of $200,000 in 25 years. • You think you will want $50,000 per year for 30 years when you retire (the first withdrawal will come one year after retirement). • You will begin saving an amount to meet your retirement goals one year from today, and your last contribution will be in 30 years. Required: • If you think you can make 9% on your investments, how much will you need to save each year for the next 30 years to meet your retirement goals?
• You plan to retire in 30 years. • In 50 years, you want to give your daughter a $500,000 gift. • You will receive an inheritance of $200,000 in 25 years. • You think you will want $50,000 per year for 30 years when you retire (the first withdrawal will come one year after retirement). • You will begin saving an amount to meet your retirement goals one year from today, and your last contribution will be in 30 years. Required: • If you think you can make 9% on your investments, how much will you need to save each year for the next 30 years to meet your retirement goals?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 32P
Related questions
Question
Transcribed Image Text:Finance
• You plan to retire in 30 years.
• In 50 years, you want to give your daughter a $500,000 gift.
• You will receive an inheritance of $200,000 in 25 years.
• You think you will want $50,000 per year for 30 years when you retire (the first withdrawal
will come one year after retirement).
• You will begin saving an amount to meet your retirement goals one year from today, and
your last contribution will be in 30 years.
Required:
• If you think you can make 9% on your investments, how much will you need to save each
year for the next 30 years to meet your retirement goals?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
PFIN (with PFIN Online, 1 term (6 months) Printed…
Finance
ISBN:
9781337117005
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
PFIN (with PFIN Online, 1 term (6 months) Printed…
Finance
ISBN:
9781337117005
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning