• You plan to retire in 30 years. • In 50 years, you want to give your daughter a $500,000 gift. • You will receive an inheritance of $200,000 in 25 years. • You think you will want $50,000 per year for 30 years when you retire (the first withdrawal will come one year after retirement). • You will begin saving an amount to meet your retirement goals one year from today, and your last contribution will be in 30 years. Required: • If you think you can make 9% on your investments, how much will you need to save each year for the next 30 years to meet your retirement goals?

• You plan to retire in 30 years. • In 50 years, you want to give your daughter a $500,000 gift. • You will receive an inheritance of $200,000 in 25 years. • You think you will want $50,000 per year for 30 years when you retire (the first withdrawal will come one year after retirement). • You will begin saving an amount to meet your retirement goals one year from today, and your last contribution will be in 30 years. Required: • If you think you can make 9% on your investments, how much will you need to save each year for the next 30 years to meet your retirement goals?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 32P

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