Save money to meet three objectives
Course:- Business Economics
Reference No.:- EM132281492

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

Uncle Phil wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with a retirement income of $28,500 per month for 20 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a mansion in 10 years at an estimated cost of $365,000. Third, after he passes on at the end of the 20 years of withdrawals, he would like to leave an inheritance of $1,225,000 to his nephew Will. He can afford to save $3,000 per month for the next 10 years. If he can earn an EAR of 11 percent before he retires and an EAR of 8 percent after he retires, how much will he have to save each month in Years 11 through 30? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Using an example explain why negative externalities lead to inefficient overproduction and discuss one way government can ensure a more efficient outcome. Discuss using an exa
Cutter Company makes and sells table saw, which are designed to be safe if used properly. Erin buys a Cutter saw and lends it to her neighbot Frank. To reach a toolbox on a hi
$150,000 is deposited in a fund that pays 5% annual compound interest for 2 years, 3% annual compound interest for 2 years, and 4% annual compound interest for 2 years. If uni
What are the characteristics that make this international company different from domestic companies? Is this company successful? What makes this company a success or failure?
Name and discuss the major types of financial intermediaries in the U.S. and illustrate the differences in the way assets and liabilities are recorded on their balance sheets.
AMS recently instituted an in-house recycling program. Profits of this program include not only profits to environment of recycling. Illustrate what level of Q maximizes prof
Using shifts in supply and demand curves, describe how a change in the exchange rate affected your industry. Label the axes, and state the geographic, product, and time dime
A first mover is dominating a market, with revenues of $40 million annually. The average total cost of the firm is #02 million, of which $19 million is fixed. How can the firs