Having just graduated from Wayland with a degree in finance, you landed a job as a finance counselor for a large company. Your very first client is a young couple who want to put their financial business in order. Both the husband and the wife are 27 years ago and in stable employment. They want to retire together at the age of 65. Thus, they have 38 (=65-27) years until retirement from now. They want you to help them in their financial planning by answering a series of questions as follows.

1. The couple has combined annual income of $75,000 today. They expect an annual average growth in their income of 4%. Use Excel spread sheet to show your analysis. How much will they be making annually by the time they retire?

Answer rating: 100% (QA)

To calculate the couples expected annual income at retirement we can use the futu... View the full answer