Use for spending money in their retirement years

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Reference no: EM131597240

1. How much would you need to deposit in an account now, such that in 25 years your account will have increased to $8,000, assuming you can earn 5% on the deposit as it grows? (Present Value)

2. Hank wants to start a savings account that he and his wife can use for spending money in their retirement years. He wants to be able to withdraw $7,200 per year for at least 20 years. If the account earns 3%, what would he need to deposit now in order to have enough money on hand in retirement? (Present Value)

Reference no: EM131597240

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