Required annuity payments Retirement income today Years to retirement Years of retirement $55,000 10 25 Inflation...
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Required annuity payments Retirement income today Years to retirement Years of retirement $55,000 10 25 Inflation rate 3.00% Savings $110,000 Rate of retur 10.00% Calculate value of savings in 10 years: Savings at t=10 Formulas #N/A Calculate value of fixed retirement income in 10 years: Retirement income at t=10 #N/A Calculate value of 25 beginning-of-year retirement Spayments at t=10: Retirement payments at t=10 #N/A 8 9 Calculate net amount needed at t=10: 20 Value of retirement payments 1 Value of savings 22 Net amount needed 23 24 Calculate annual savings needed for next 10 years 25 Annual savings needed for retirement BSheet #N/A #N/A #N/A N/A Required annuity payments Retirement income today Years to retirement Years of retirement $55,000 10 25 Inflation rate 3.00% Savings $110,000 Rate of retur 10.00% Calculate value of savings in 10 years: Savings at t=10 Formulas #N/A Calculate value of fixed retirement income in 10 years: Retirement income at t=10 #N/A Calculate value of 25 beginning-of-year retirement Spayments at t=10: Retirement payments at t=10 #N/A 8 9 Calculate net amount needed at t=10: 20 Value of retirement payments 1 Value of savings 22 Net amount needed 23 24 Calculate annual savings needed for next 10 years 25 Annual savings needed for retirement BSheet #N/A #N/A #N/A N/A
Expert Answer:
Answer rating: 100% (QA)
To calculate the value of savings in 10 years we can use the future value of a lump sum formula Future Value Present Value 1 Rate of ReturnNumber of Y... View the full answer
Related Book For
Personal Finance An Integrated Planning Approach
ISBN: 978-0136063032
8th edition
Authors: Ralph R Frasca
Posted Date:
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