W You are 40 years away from retirement and expect to live for 25 years after retirement.

W 

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You are 40 years away from retirement and expect to live for 25 years after retirement. Currently, a nursery home costs $20,000 per year, payable at the beginning of the year. You expect annual costs to continually increase at an average of 5% per year. Assuming that the interest rate is 5% and that you plan to move to a nursery home immediately after retirement, how much do you need to have in the bank when you retire (just before the first year payment) to cover the 25 years that you expect to live in the nursery home? You are 40 years away from retirement and expect to live for 25 years after retirement. Currently, a nursery home costs $20,000 per year, payable at the beginning of the year. You expect annual costs to continually increase at an average of 5% per year. Assuming that the interest rate is 5% and that you plan to move to a nursery home immediately after retirement, how much do you need to have in the bank when you retire (just before the first year payment) to cover the 25 years that you expect to live in the nursery home?