Question

View History Bookmarks People Window Help My Pitt Home , Chapter 6 Assignment 、G what is The Value Toda O Rental Listings I ocLI x × > С https://newconnect.mh educat nect html Chapter 6 Assignment Saved Hel Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years 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 $425,000. Third after he passes on at the end of the 25 years of withdrawals, he would like to leave an inheritance of $1,325,000 to his nephew Frodo. He can afford to save $4,200 per month for the next 10 years. If he can earn an EAR of 10 percent be 7 percent after he retires, how much will he have to save each month in Years 11 through 30? (Do not round intermediat places, e.g., 32.16.) from now with retirement income of $32,500 per month for 25 fore he retires and an EAR of points e calculations and round your answer to 2 decimal elook Print References Monthly savings Prex8 of 25Next> MacBook Air
0 0
Add a comment Improve this question Transcribed image text
Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

VERY GOOD SUM FROM RHome nert Page Layout Formulas Data Review View dd-Ins as Cut ta copy ▼ E AutoSum ー E ゴWrap Text в 1 프· ー· 鱼, Δ. :r-ㄧ 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Formsat Paste Sort &Find & Format Painter Formatting as Table Styles2 Clear Clipboard DP149 DL Font Alignment Number Styles Cells Edting DM DN DO DP DQ DR DS DT DU DV 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 4EV PE EPS DIV ABNORMAL APV ROSS deberk MARGIN MONEY STEP 1 PRE RETIREMENT APR EAR NOMINAL RATE 10% 9.57% EXCEL-NOMINAL 10%, 12) STEP 2 POST RETIREMENT APR EAR NOMINAL RATE 6.78% NOMINAL(796,12) EXCEL PV(6.78%/12,12*25,-32500) EXCEL-PV(6.78%/12,12*25,,-1325000) STEP 3 PV OF 32500 PER MONTH 4691060.55 244432.24 PV OF 1325000 (INHERITANCE) SO HE NEEDS AT RETIREMENT 4935492.79 STEP 4 SAVINGS 4200 9.57% RATE TIME FV OF SAVINGS 10 YEARS 839477.51 EXCEL -FV(9.57%/12,10*12,-4200) al tax . PB ROPİ ote EVA MVA LEVERAGED BUYSWAPdistress BRIGHAN CAP GAIN erences: AL125 福 130% 04:45 28-01-2019Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text ta copy ▼ в 1 프· ー· 鱼, Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Formsat Paste Sort &Find & 2 ClearFe Select Edting Format Painter Formatting, as Table w styles. ▼ ㆆ ▼ Clipboard DP168 DL Font Alignment Number Cells DM DN DO DP DQ DR DS DT DU DV AFTER PURCHASE OF CABIN OF $425000 AMOUNT LEFT 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 4EV PE EPS DIV ABNORMAL APV ROSS deberk MARGIN MONEY STEP 5 414477.51 (839477.51-425000) HE STILL HAS 20 YEARS TO RETIRE FV OF 414477.51 AFTER 20 YEARS STEP 6 FV 2788968.20 EXCEL-FV(9.57%/12,12*20,,-414477.51) STEP 7 HE WILL BE SHORT OF MONEY BY = 4935492.79 (STEP!)-2788968.20 2146524.60 FV RATE TIME 2146524.60 9.57% 20 YEARS ANSWER MONTHLY SAVINGS $ 2,988.11 EXCEL-PMT(9.57%/12,12*20,,-2146524.60) a- al tax . PB ROPİ ote EVA MVA LEVERAGED BUYSWAPdistress BRIGHAN CAP GAIN erences: AL125 福 130%OSS BOOK FOR CONCEPT CLARITY OF TIME VALUE OF MONEY.

Add a comment
Know the answer?
Add Answer to:
View History Bookmarks People Window Help My Pitt Home , Chapter 6 Assignment 、G what is...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT