Styles You are 35 years old today and are considering your retirement needs. You expect to...

 

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Styles You are 35 years old today and are considering your retirement needs. You expect to retire at age 65, and your actuarial tables suggest that you will live to be 105. You want to move to the Cayman Islands when you retire. You estimate that it will cost you $400,000 to make the move (on your sixty- fifth birthday) and that your living expenses after that will be $40,000 a year (starting the end of year 66 and continuing through the end of year 105). You expect to earn 5% on your money. How much will you need to have saved by your retirement date to be able to afford this course of action? You already have $40,000 in savings. How much would you need to save each year between now and the time you retire to be able to afford this retirement plan? If you did not have any current savings and do not expect to be able to start saving money for the next five years, how much would you have to set aside each year after that to be able to afford this retirement plan? Styles You are 35 years old today and are considering your retirement needs. You expect to retire at age 65, and your actuarial tables suggest that you will live to be 105. You want to move to the Cayman Islands when you retire. You estimate that it will cost you $400,000 to make the move (on your sixty- fifth birthday) and that your living expenses after that will be $40,000 a year (starting the end of year 66 and continuing through the end of year 105). You expect to earn 5% on your money. How much will you need to have saved by your retirement date to be able to afford this course of action? You already have $40,000 in savings. How much would you need to save each year between now and the time you retire to be able to afford this retirement plan? If you did not have any current savings and do not expect to be able to start saving money for the next five years, how much would you have to set aside each year after that to be able to afford this retirement plan?

Answer rating: 100% (QA)

At the end of year 65 PV of all the annual requirements PV Rate Nper PMT FV PV 5 105 65 40000 0 68... View the full answer