Bob is 22 years old college graduate and his initial wealth is zero but will receive...
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Bob is 22 years old college graduate and his initial wealth is zero but will receive a bequest of $25000 from his grandmother. His annual income after graduation is $55,000 for the first five years. After that, he expects to get a promotion with an annual income of $100,000 for the rest of his working years that will last for 40 years. He expects to have two children and each will cost him $200,000, living expenses and costs in education. He expects to live up to 83. His wife is 20 years old and expects to earn an annual income of $70,000 for her working years of 45 years as a nurse. Her life expectancy is 85. The couple wants to give their children a bequest of $150,000 each. Answer the following questions for Bob's family: 1. a). 2. b) What is the total consumption expenditure for the family? .When Bob is 30 years old, what is the total wealth of the family? Assume that the bequest of $25,000 is not available. 3. c) What is the annual saving for the family? Bob is 22 years old college graduate and his initial wealth is zero but will receive a bequest of $25000 from his grandmother. His annual income after graduation is $55,000 for the first five years. After that, he expects to get a promotion with an annual income of $100,000 for the rest of his working years that will last for 40 years. He expects to have two children and each will cost him $200,000, living expenses and costs in education. He expects to live up to 83. His wife is 20 years old and expects to earn an annual income of $70,000 for her working years of 45 years as a nurse. Her life expectancy is 85. The couple wants to give their children a bequest of $150,000 each. Answer the following questions for Bob's family: 1. a). 2. b) What is the total consumption expenditure for the family? .When Bob is 30 years old, what is the total wealth of the family? Assume that the bequest of $25,000 is not available. 3. c) What is the annual saving for the family?
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Related Book For
Federal Taxation 2014 Comprehensive
ISBN: 9780133438598
27th edition
Authors: Timothy J. Rupert, Thomas R. Pope, Kenneth E. Anderson
Posted Date:
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