Your client needs $80,000 each year ($ today) 15 years from now for a retirement period of 20 years. The rate of inflation is 4% for the next 15 years compounded annually. Ignore the rate of inflation and the rate of investment beyond year 15. There is an investment opportunity of 7% (tax-exempt) compounded monthly. On a monthly basis, how much should the client deposit each month to achieve this goal before income tax if the income tax rate of the client is 20%? The answer is closer to: a. Less than $9000 b. 9091 c. $11363 d. More than $11425 e. None of the above. My answer is
Your client needs $80,000 each year ($ today) 15 years from now for a retirement period of 20 years. The rate of inflation is 4% for the next 15 years compounded annually. Ignore the rate of inflation and the rate of investment beyond year 15. There is an investment opportunity of 7% (tax-exempt) compounded monthly. On a monthly basis, how much should the client deposit each month to achieve this goal before income tax if the income tax rate of the client is 20%? The answer is closer to: a. Less than $9000 b. 9091 c. $11363 d. More than $11425 e. None of the above. My answer is
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:Your client needs $80,000 each
year ($ today) 15 years from now
for a retirement period of 20
years. The rate of inflation is 4%
for the next 15 years compounded
annually. Ignore the rate of
inflation and the rate of
investment beyond year 15. There
is an investment opportunity of
7% (tax-exempt) compounded
monthly. On a monthly basis, how
much should the client deposit
each month to achieve this goal
before income tax if the income
tax rate of the client is 20%? The
answer is closer to:
a. Less than $9000
b. 9091
c. $11363
d. More than $11425
e. None of the above. My answer
is
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