A client wants to retire in 20 years and expects to enjoy retirement for at least 25 years. They will need a cash flow of $70,000 per years (occur at the end of each year). They started investing $15,000 per year five years ago and will continue to do so for 20 more years. How much more will they have to invest each year for the next 20 years to have the necessary funds for their retirement? interest for calculating is 5%.
A client wants to retire in 20 years and expects to enjoy retirement for at least 25 years. They will need a cash flow of $70,000 per years (occur at the end of each year). They started investing $15,000 per year five years ago and will continue to do so for 20 more years. How much more will they have to invest each year for the next 20 years to have the necessary funds for their retirement? interest for calculating is 5%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A client wants to retire in 20 years and expects to enjoy retirement for at least 25 years. They will need a cash flow of $70,000 per years (occur at the end of each year). They started investing $15,000 per year five years ago and will continue to do so for 20 more years.
How much more will they have to invest each year for the next 20 years to have the necessary funds for their retirement? interest for calculating is 5%.
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