1. . Carolyn and Jim are planning on retiring next year when they turn 65.
2. 
   
3. (i) They estimate that they will need $62235 per year when they retire to cover their expenses, travel and taxes.
4.  
5. (ii) They will need this income each year until they die at age 95.
6. 
   
7. (iii) They are currently earning a rate of return of 5% on their investments and the rate of inflation is 2%.
8.  
9. (iv) What amount of money will they need when they retire next year to fund their retirement?
10. 
    

Answer rating: 100% (QA)

To calculate the amount of money Carolyn and Jim will need when they retire ... View the full answer