Annuities A couple will retire in 50 years; they plan to spend about 30,000 a year in
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Annuities A couple will retire in 50 years; they plan to spend about £30,000 a year in retirement, which should last about 25 years. They believe that they can earn 8 per cent interest on retirement savings. 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. How would this change if the couple also realize that in 20 years they will need to spend £30,000 on their child’s college education?
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Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
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