You have just turned 45 and have started thinking about saving for your retirement. You want...

 

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You have just turned 45 and have started thinking about saving for your retirement. You want to have an extra annual payment of 10,000 euros per year during 20 years starting 20 years from now. During the first 20 years you will save an annual amount increasing at 3% per year. Assume all cash flows happen at the end of the year. If the long-term discount rate is 6%, which is the initial amount that must be saved during the first year? You have just turned 45 and have started thinking about saving for your retirement. You want to have an extra annual payment of 10,000 euros per year during 20 years starting 20 years from now. During the first 20 years you will save an annual amount increasing at 3% per year. Assume all cash flows happen at the end of the year. If the long-term discount rate is 6%, which is the initial amount that must be saved during the first year?

Answer rating: 100% (QA)

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