Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a couple will retire in 40 years; they plan to spe

A couple will retire in 40 years; they plan to spend about $39,000 a year...

50.1K

Verified Solution

Question

Finance

A couple will retire in 40 years; they plan to spend about $39,000 a year in retirement, which should last about 20 years. They believe that they can earn 8% interest on retirement savings.

a. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. How would the answer to part (a) change if the couple also realize that in 15 years they will need to spend $69,000 on their childs college education? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Problem Four : Kaplan Incorporated currently uses an older model BAII plus milling machine that was purchased two...

Finance
Q

I made a solution of fluorscein and diluted it with ethanol, and I was confused about...

Chemistry
Q

Topic: Should Eminent Domain Be Used to promote Private Development? Please explain in 4-5 paragraphs with no...

Medical Sciences
Q

Part I: Origins of Psychology Within psychology, there are several perspectives used to describe, predict, and explain...

Psychology
Q

this is cahce memory related c program....and not working or running properly??????? #include #include #include #include #include...

Electrical Engineering
Q

Two thin, isolated, concentric conducting spheres of radii 1.10 cm and 7.70 cm, have net charges...

Physics
Q

Which of the following types of organisms contain a nucleus?O Archaea cellsO Bacteria cellsO Eukaryotic...

Biology
Q

12a^3p^4 -2a^2p-6a^3p^5-24ap^3-6ap^36a^5p^3

Basic Math
Q

Entries for Uncollectible Accounts, using Direct Write-off Method Journalize the following transactions in the accounts...

Accounting
Q

Rashid will have use of a diesel company car for the whole tax year with...

Accounting
Q

Hybrid Corporation began operations in 2018 and during that year purchased equity investments. It owns...

Accounting
Q

A comparative balance sheet for Rocker Company appears below: ROCKER COMPANY Comparative Balance Sheet Dec...

Accounting