5. Sam wants to save money to meet two objectives. First, he would like to buy a fishing boat 5 years from today at an
Posted: Wed Jul 06, 2022 6:41 pm
5. Sam wants to save money to meet two objectives. First, he would like to buy a fishing boat 5 years from today at anestimated cost of $15,000.
Second, he would like to retire 20 years from now and have aretirement
income of $50,000 per year for at least 20 years. Sam canafford to save only $10,000 per year for the first 10 years.
He expects to earn 8% per year on average from his savings overthe next 40 years.
What must his minimum yearly savings be for the second 10 yearsto meet his objectives?
Second, he would like to retire 20 years from now and have aretirement
income of $50,000 per year for at least 20 years. Sam canafford to save only $10,000 per year for the first 10 years.
He expects to earn 8% per year on average from his savings overthe next 40 years.
What must his minimum yearly savings be for the second 10 yearsto meet his objectives?