Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / A 30-year old man is planning for his retirement in 35 years
A 30-year old man is planning for his retirement in 35 years. He wants to be able to withdraw $90,000 each year for 25 years after he retires. How much will he need to save each year for the next 35 years if he can earn 12 percent on his savings?
Calcuating Present Value at retirement,
Usng TVM Calculation,
PV = [FV = 0, PMT = 90,000, N = 25, I = 0.12]
PV = $705,883
Calculating Annual Saving,
Using TVM Calculation,
PMT = [PV = 0, FV = 705,883, N = 35, I = 0.12]
PMT = $1,635.26
