+1-415-670-9189
info@expertsmind.com
Calculate the lump sum needed at retirement
Course:- Business Economics
Reference No.:- EM132281506




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Business Economics

The Smiths had $110,000 in savings at age 51. They had a desired retirement age of 65. They want to fund through age 92. Assume a 4 percent inflation rate and a 5 percent after-tax rate for investment both pre- and postretirement. They have household income of $140,000, which is increasing at the rate of inflation. Their expenditures including taxes are $125,000 a year. They estimate that in retirement they will receive $28,000 a year together in Social Security and Mr. Smith will receive a $12,000-a-year pension, both in today's dollars.Their retirement expenditures would be $90,000 a year in today's dollars.

a) Calculate the lump sum needed at retirement.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Many people wish to live in the beautiful town of Beachfront by the sea, but they don’t like the rents. In its current market equilibrium, Beachfront has 20,000 rental apartme
The three basic questions of Economics are: "What to produce?"; "How to produce?" and "For whom to produce?" What are the corresponding underlying assumptions? Say how the ass
If “the” multiplier is 6, the income multiplier with respect to the money supply is 4, and the money multiplier is 5, then which of the following policies increase income by $
Consider a game of the “Jack and Jill” type in which a market is a duopoly and each firm decides to produce either a “high” quantity of output or a “low” quantity of output. I
If a two linear demand curve run through a common point than at any given quantity the curve that is flatter is more elastic? Whether buyers or sellers bear the majority of th
Independent farmers in Kenya would grow coffee which they would roast and consume as a much-needed beverage. Show the circuit of production for this way of getting something t
Per capita income in County A is $45,000. Per capita income in County B is $38,000. Physician visits average 3.4 per year in County A and 3.2 per year in County B. What is the
Some reject fiscal stimulus measures in all policy forms. Explain what the various limitations are to a successful fiscal stimulus. Be sure to consider the damaging activities