Haley is 57 years of age. She is planning for future long-term care needs. She knows that
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Haley is 57 years of age. She is planning for future long-term care needs. She knows that yearly nursing home costs in her area are currently $69,000, with prices increasing by 5 percent annually. She also is willing to assume a six year LTC need. How much does Haley need on her first day of care to fully fund LTC costs if she goes into a nursing care facility at age 73? Assume that she currently has $50,000 saved for future costs, can earn 8 percent on savings (before taxes), and that she is in a 24 percent combined state and federal marginal income tax bracket.
| a. | $700,752
| |
| b. | $709,721
| |
| c. | $872,049
| |
| d. | $881,018
|
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Related Book For 
Introduction to Management Science A Modeling and Cases Studies Approach with Spreadsheets
ISBN: 978-0078024061
5th edition
Authors: Frederick S. Hillier, Mark S. Hillier
Posted Date:
