Jamaal and Erika are planning to retire in 20 years and move to Florida. They expect to live there for 25 years and estimate they will need 50,000 a year as expenses starting at the end of year 21 and continuing through the end of year ) When they retire 120 years from today they expect to sell their current house 800,000 and buy one in Florida for 600,000. They also have 50,000 in savings right now.

 Taking into account all their other cash flows, what fixed amount must they save every year starting at the end of this year and ending at the end of year 20? The discount rate is 6%.

Answer rating: 100% (QA)

Lets calculate each of these components Present Value of Expenses in Florida They need 50000 per yea... View the full answer