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
In 1980, Denmark had a GDP of $70 billion (measured in U.S. dollars) and a population of 5.1 million. In 2000, Denmark had a GDP of $160 billion (measured in U.S. dollars) and
Suppose that the U.S. the demand for phones is given by P=700-Q that the supply is given by P=200+Q. In Korea suppose the demand is given by P=600-Q and supply is given by P=5
The extent of _______________________ will depend on how easy it is for workers to learn about alternative jobs, which may reflect the ease of communications about job prospec
Explain that how the physical state of the hazardous substances has potential for harm. What is moral hazard? List three things an employer might do to reduce the severity of
As noted in the chapter, separating the production of electricity from its delivery has led to considerable deregulation of producers. (See page 599 in the textbook.) Briefly
As internet banking spreads, velocity begins to increase at a rate of 3 percent per year. What will happen to the rate of inflation? How could the ECB offset the impact on i
Both theory and experience suggest that (fill in the blank) results in lower and less volatile annual rates of inflation. a. having no central bank b. having a central bank th
The head of the accounting department at a major software manufacturer has asked you to put together a pro forma statement of the company's value under several possible growth