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linda_us, Master's Degree
Category: Multiple Problems
Satisfied Customers: 1402
Experience:  A tutor for Business, Finance, Accounts and other related topics.
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# You plan to retire in 30 years and want to accumulate enough

### Customer Question

You plan to retire in 30 years and want to accumulate enough by then to provide yourself with \$32,000 a year for 15 years. If the interest rate is 10%, how much must you accumulate by the time you retire? (Do not round intermediate calculations. Round
your answer to 2 decimal places.) Present value \$ b. How much must you save each year until retirement in order to finance your retirement consumption? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Save each year \$ c. Now
you remember that the annual inflation rate is 4.2%. If a loaf of bread costs \$1 today, what will it cost by the time you retire? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual inflation rate \$ d. You really want to
consume \$32,000 a year in real dollars during retirement and wish to save an equal real amount each year until then. What is the real amount of savings that you need to accumulate by the time you retire? (Do not round intermediate calculations. Round your
answer to 2 decimal places.) Present value \$ e. Calculate the required preretirement real annual savings necessary to meet your consumption goals. Compare with your answer to (b). (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Payment \$ f. What is the nominal value of the amount you need to save during the first year? (Assume the savings are put aside at the end of each year.) The Thirtieth year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Nominal
value \$ Thirtieth year \$
Submitted: 1 year ago.
Category: Multiple Problems
Customer: replied 1 year ago.
Johnmark if possible, but open to others as well if it is already being worked on.
Expert:  adamousacom replied 1 year ago.
I can work on this if you let me know.
Expert:  adamousacom replied 1 year ago.
Please let me know o I do not waste my time.
Customer: replied 1 year ago.
Yes that is fine. Thank youCustomer
Expert:  adamousacom replied 1 year ago.
Customer: replied 1 year ago.
I would need it as soon as possible, but no later than 3 please. I want to make sure that I have some time to work on it before I leave for class tonight
Expert:  adamousacom replied 1 year ago.
I will have to opt out as I cannot complete it by 3
Expert:  adamousacom replied 1 year ago.
I assume you would like the question closed as it is past 3 pm. Please let me know.
Expert:  F. Naz replied 1 year ago.
Do you still need the answer, thanks.
Expert:  adamousacom replied 1 year ago.
If you have other questions please ask now or later and I'll be happy to respond. I’ll be notified (even if I leave).
If not PLEASE rate this answer so I can be freed to help another person.
Even after you rate my response we can continue to chat here at no extra cost to you.
As I strive for quality vs. quantity, I find I can only handle a limited number of questions at a single time.