Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $28,000 per month for 30 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 20 years at an estimated cost of $1,239,000. Third, after he passes on at the end of the 30 years of withdrawals, he would like to leave an inheritance of $550,000 to his nephew Frodo. He can afford to save $1,700 per month for the next 20 years. If he can earn a 12 percent EAR before he retires and a 11 percent EAR after he retires, how much will he have to save each month in Years 21 through 30?
$12,524.57
$9,774.14
$9,390.84
$9,582.49
$12,450.30
PE EPS, STOCK DIVIDEND - Microsoft Excel (Product Activation Failed) View Add-Ins Review - 2x = = Dr General Wrap Text Merge & Center Σ AutoSum : A Fill 2 Sort & to be conditional Format set $ - % m Find & 8. inser Formatting as Table Styles Styles Clear Select Filter Editing Alignment Number Cells F G H M File Home Insert Page Layout Formulas Data % Cut Calibri 11AA = Ea Copy Paste Format Painter B I U D A E Clipboard Font G346 A B 331 332 STEP 1 PRE RETIREMENT APR 333 EAR 334 NOMINAL RATE 335 336 STEP 2 POST RETIREMENT APR 337 EAR 338 NOMINAL RATE 12% 11.3866% EXCEL =NOMINAL(12%,12) 11% 10.4815% EXCEL = NOMINAL(11%, 12) 339 STEP 3 340 341 PV OF 28000 PER MONTH PV OF 550000 (inheritance) 3065612.63 24025.55 [=PV(D338/12,12*30,-28000)] [=PV(D338/12,12*30,,-550000)] 342 SO HE NEEDS AT RETIREMENT 3089638.18 [=SUM(D340:D341)] 343 344 345 STEP 4 346 347 348 349 SAVINGS RATE YEARS EV OF SAVINGS 1700 11.3866% 20 1549058.81 [=FV(D334/12,D347*12,-D345)] N d marginal tax PB ROPI APV ROSS price quote EVA MVA LEVERAGED BUY SWAP distress BRIGHAN CAP GAIN Sheet1 I eberk MARGIN MONEY ferences call put bilbo NI BO. 130% Rea 40-_+ EJER * ENG 25-09-2019
Bilbo Baggins wants to save money to meet three objectives. First, he would like to be...
Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $26,000 per month for 20 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $288,000. Third, after he passes on at the end of the 20 years of withdrawals, he would...
Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with a retirement income of $32,500 per month for 20 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $405,000. Third, after he passes on at the end of the 20 years of withdrawals, he...
Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with a retirement income of $25,000 per month for 20 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $330,000. Third, after he passes on at the end of the 20 years of withdrawals, he...
Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years Income of $28,000 per month for 15 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $320,000. Third, after he passes on at the end of the 15 years of withdrawals, he would like to leave an...
Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $31,500 per month for 25 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $415,000. Third, after he passes on at the end of 30 years, he would like to leave...
Problem 4-59 Calculating Annuity Values Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with a retirement income of $29,000 per month for 20 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $370,000. Third, after he passes on at the end of the...
Problem 4-59 Calculating Annuity Values Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with a retirement income of $26,000 per month for 20 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $340,000. Third, after he passes on at the end of the...
Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with retirement income of $28,500 per month for 25 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $385,000. Third, after he passes on at the end of the 25 years of withdrawals, he would...
Please show work. Thank you Return to question Problem 4-59 Calculating Annuity Values points Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with a retirement income of $29,000 per month for 20 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $370,000. Third,...
David Cooper wants to save money to meet three objectives. First, he would like to retire 30 years from now with retirement income of $21,000 per month for 20 years, with first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Boise in 10 years at an estimated cost of $330,000. Third, after he passes on the end of the 20 years of withdrawals, he would like to leave an inheritance...