Parker is doing some retirement planning. He would like to have a retirement incomeof $3,000 at the beginning of each month during his retirement. He expects hisretirement to last for 20 years and that his fund will earn j12-3.6% during retirement.a) How much money must Parker have in his account on the day he retires in order tofund his retirement?b) How much must Parker deposit at the end of each month into his retirement fundfrom now until retirement in order to have enough to fund his retirement goal?Assume that he already has $30,000 in his account and that he will retire in 30 years

in this problem we have to calculate present value FACTOR and present value of retirement income and…

w much money must Parker have in his account on the nis retirement? v much must Parker deposit at the end of each mont ow until retirement in order to have enough to fund e that he already has $30,000 in his account and the

w much money must Parker have in his account on the nis retirement? v much must Parker deposit at the end of each mont ow until retirement in order to have enough to fund e that he already has $30,000 in his account and the

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 39P

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Question

Parker is doing some retirement planning. He would like to have a retirement income
of $3,000 at the beginning of each month during his retirement. He expects his
retirement to last for 20 years and that his fund will earn j12-3.6% during retirement.
a) How much money must Parker have in his account on the day he retires in order to
fund his retirement?
b) How much must Parker deposit at the end of each month into his retirement fund
from now until retirement in order to have enough to fund his retirement goal?
Assume that he already has $30,000 in his account and that he will retire in 30 years

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