Ask question

Ask question

All categories

Oksi-84 [34.3K]

1 year ago

11

You want to retire on the equivalent of $50,000 per year in today's money. inflation is expected to be 3%. you will retire in 30

years. you will earn 10% annually on your investments from not till retirement and you will earn 8% during retirement (which is expected to last 20 years). how much do you need to save per month in order to fund this retirement?

1 answer:

kicyunya [14]1 year ago

5 0

$662.18 needs to be saved per month.

$90,000 now at 3% inflation will become 90000*1.03^30 after 30 years.

i.e. $218,454 is required in retirement years (for 20 years)

Calculating the PV of these payments at 7% is calculated as below.

FV = 0

1/y = 7%

n=20; PMT = 218454; calculate PV = $2,314,305

Now we want to get $2,314,305 at the start of retirement by saving per year. Enter the following in the financial calculator to get the per month amount.

FV = 2314305; PV = 0; n= 12*30; 1/y = 12%/12; calculate PMT = $662.18

So $662.18 needs to be saved per month.

Learn more about inflation here: brainly.com/question/8149429

#SPJ4

You might be interested in

Find the value of y for which the lines are parallel<br><br> a-68<br> b49<br> c55<br> d100

dexar [7]

B.

You know that the angle formed by 51 and y + 6 is equal to 106 because it needs to be supplementary with the 74. Thus, after subtracting you can get 49.

7 0

3 years ago

- 2x (a+h)^2+4(a+h)-12

hjlf

That’s the answer mama

7 0

3 years ago

1) Find the lump that must be deposited today to have a future value of $ 25,000 in 5 years if funds earn 6 % componded annually

Hoochie [10]

Answer: $ 18681.45

Step-by-step explanation:

Given: Future value : $FV=\$25,000$

The rate of interest : $r=0.06$

The number of time period : $t=5$

The formula to calculate the future value is given by :-

$\text{Future value}=P(1+i)^n$ , where P is the initial amount deposited.

$\Rightarrow\ 25000=P(1+0.06)^5\\\\\Rightarrow\ P=\dfrac{25000}{(1.06)^5}\\\\\Rightarrow\ P=18681.4543217\approx=18681.45$

Hence, the lump that must be deposit today : $ 18681.45

4 0

3 years ago

Find the missing lengths: LK=15 and KH=9, find KI and HI.

Luda [366]

Answer:

KI=11.25 and HI=6.75

Step-by-step explanation:

Consider the below figure attached with this question.

According to Pythagoras Theorem:

$base^2+perpendicular^2=hypotenuse^2$

Use Pythagoras in triangle HKL

$LH^2+KH^2=LK^2$

$(LH)^2+9^2=15^2$

$(LH)^2+81=225$

$(LH)^2=144$

Taking square root on both sides.

$LH=12$

Let length of HI be x.

LI = 12+x

Use Pythagoras theorem in ΔKLI,

$(KI)^2+15^2=(12+x)^2$

$(KI)^2+225=x^2+24x+144$

$(KI)^2=x^2+24x+144-225$

$(KI)^2=x^2+24x-81...(1)$

Use Pythagoras theorem in ΔHKI,

$(KI)^2=x^2+9^2$

$(KI)^2=x^2+81...(2)$

From (1) and (2) we get

$x^2+81=x^2+24x-81$

$24x=162$

$x=\dfrac{162}{24}=6.75$

Hence, the measure of HI is 6.75 units.

Substitute x=6.75 in equation (2).

$(KI)^2=(6.75)^2+81$

$(KI)^2=126.5625$

Taking square root on both sides.

$KI=\sqrt{126.5625}$

$KI=11.25$

Hence, the measure of KI is 11.25 units.

3 0

3 years ago

Tammy's fish tank has 19 liters of water in it. She plans to add 4 liters per minute until the tank has more than 47 liters. Wha

romanna [79]

Answer:7 mins

Step-by-step explanation:

47 minus 19 equals 28 4 times 7 equals 8

5 0

3 years ago