Order to finance the aforementioned

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Reference no: EM13944968

You have the following information. In 10 years and in 15 years you will send your two nephews to attend school. The tuition now is $10,000 but will grow at 7% per annum. The school will guarantee the tuition to be the same per year at the time your nephews enroll, but you need to address the rise of the tuition before that time. You want to take care of your father’s nursing home in 40 years which costs $40,000 yearly now, but will increase at a rate of 6% yearly. The nursing home will charge an expense which will remain fixed per annum for the duration of the convalescence which will be 20 years. You will retire in 40 years and be in retirement 35 years. You will need $60,000 of income annually. If you can borrow or lend at 5% interest rate, how much should you save per year in the next 40 years, in order to finance the aforementioned?

Reference no: EM13944968

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