How much will he have to save each month

Assignment Help Finance Basics

Reference no: EM13294374

Bilbo Baggins wants to save money to meet three objectives.First, he would like to be able to retire 30 years from now withretirement income of $20,000 per month for 25 years, with the firstpayment received 30 years and 1 month from now. Second, he wouldlike to purchase a cabin in Rivendell in 10 years at an estimatedcost of $380,000. Third, after he passes on at the end of the 25 years of withdrawals, he would like to leave an inheritance of$900,000 to his nephew Frodo. He can afford to save $2,500 permonth for the next 10 years. If he can earn an 10 percent EAR before he retires and an 7 percent EAR after he retires, how much will he have to save each month in years 11 through 30?

Reference no: EM13294374

Questions Cloud

Design a 3-tap fir highpass filter with a cutoff frequency : Design a 3-tap FIR highpass filter with a cutoff frequency of 1,600Hz and a sampling rate of 8,000 Hz using: a. Rectangular window function b. Hamming window function Determine the transfer function and difference equation of the designed FIR system

Explain what will be its temperature in degree celsuis : A sample of nitrous oxide gas, N2O in a nonrigid container at a temperature of 33C occupies a certain volume at a certain pressure. What will be its temperature in degree Celsuis in each of the following situations

Draw a kekule diagram for benzene : Draw a Kekule diagram for benzene - why is this representation of benzene not considered to be as good as drawing a hexagon with a circle in the centre? What does the circle represent?

Obtain the mass of the planet : Your spaceship lands on an unknown planet. To determine the characteristics of this planet, you drop a 1.30 kg wrench from 3.50 m above the ground, What is the mass of the planet

How much will he have to save each month : He can afford to save $2,500 permonth for the next 10 years. If he can earn an 10 percent EAR before he retires and an 7 percent EAR after he retires, how much will he have to save each month in years 11 through 30?

Show that johnson counter with n flip-flops produces states : Show that a Johnson counter with n flip-flops produces a sequence of 2n states. List the 10 states produced with five flip-flops and the boolean terms of each of the 10 AND gate outputs.

Explain directly proportional to the number of moles of gas : For any gas, the voulme the gas occupies is directly proportional to the number of moles of gas at a given temperature and pressure. Air is 21.0% (by volume) O2 How many moles of oxygen are present in 10.0 moles of air

Find attractive force the wooden ball acting on gold ball : Two balls , one of gold with a mass of 100 kg and one of wood with a mass if 1 kg, are suspended 1 meter apart. find attractive force the wooden ball acting on the gold ball

Obtain the pla programming table and draw the circuit : PLA design - 2bit number (AB) is multiplied by another2bit number (CD), and the four bits of the productare:f3,f2,f1,f0. Obtain the PLA programming table and draw the circuit.

User Account

All Pages