2. Mr. And Mrs. James would like to need $30,000 per year during their retirement periods...

 

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2. Mr. And Mrs. James would like to need $30,000 per year during their retirement periods to have a comfortable life. They assume that they will retire in 20 years and expect a 15-year retirement period. They will be able to earn 10% per year during the 15 years retirement period. a) How large a fund will they need when they retire in 20 years to provide the 15-year, $30,000 retirement annuity? b) How much will they need today as a single amount to provide the fund calculated in part a if they earn 8% per year during the 20 years retirement period? 2. Mr. And Mrs. James would like to need $30,000 per year during their retirement periods to have a comfortable life. They assume that they will retire in 20 years and expect a 15-year retirement period. They will be able to earn 10% per year during the 15 years retirement period. a) How large a fund will they need when they retire in 20 years to provide the 15-year, $30,000 retirement annuity? b) How much will they need today as a single amount to provide the fund calculated in part a if they earn 8% per year during the 20 years retirement period?