A couple thinking about retirement decide to put aside $3,900 each year in a savings plan that earns 8% interest. In 5 years they will receive a gift of $19,000 that also can be invested. a. How much money will they have accumulated 30 years from now? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. If their goal is to retire with $890,000 of savings, how much extra do they need to save every year? Note: Do not round intermediate calculations. Round your answer to 2 decimal places
A couple thinking about retirement decide to put aside $3,900 each year in a savings plan that earns 8% interest. In 5 years they will receive a gift of $19,000 that also can be invested. a. How much money will they have accumulated 30 years from now? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. If their goal is to retire with $890,000 of savings, how much extra do they need to save every year? Note: Do not round intermediate calculations. Round your answer to 2 decimal places
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 23P
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A couple thinking about retirement decide to put aside $3,900 each year in a savings plan that earns 8% interest. In 5 years they will receive a gift of $19,000 that also can be invested.
a. How much money will they have accumulated 30 years from now? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
b. If their goal is to retire with $890,000 of savings, how much extra do they need to save every year? Note: Do not round intermediate calculations. Round your answer to 2 decimal places
need both parts,,,,attempt if you will solve both parts....thanks
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