A couple just got married and they are both 25 years of age. They each plan to retire in 40 years at the age of 65. They want to be able to receive $200,000 at the end of each year for 20 years, upon retirement. Currently they have a total of $2,000 in cash savings. In addition they expect to receive a total of $100,000 as a retirement bonus at the end of 40 years from their employer. How much must they save at the end of each year for the next 40 years so as to have enough money to achieve their retirement goal? Assume the interest rate is 8% and will remain the same.Using all the answers to the previous questions, what is the present value today of the amount that they need to save up to reach their retirement objective?
A couple just got married and they are both 25 years of age. They each plan to retire in 40 years at the age of 65. They want to be able to receive $200,000 at the end of each year for 20 years, upon retirement. Currently they have a total of $2,000 in cash savings. In addition they expect to receive a total of $100,000 as a retirement bonus at the end of 40 years from their employer.
How much must they save at the end of each year for the next 40 years so as to have enough money to achieve their retirement goal? Assume the interest rate is 8% and will remain the same.Using all the answers to the previous questions, what is the present value today of the amount that they need to save up to reach their retirement objective?
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