Peter and Blair recently reviewed their future retirement income and expense projections. They hope to retire...

90.2K

Verified Solution

Question

Finance

Peter and Blair recently reviewed their future retirement incomeand expense projections. They hope to retire in 25 years andanticipate they will need funding for an additional 13 years. Theydetermined that they would have a retirement income of ?$45 comma000 in? today's dollars, but they would actually need ?$64 comma417 in retirement income to meet all of their objectives. Calculatethe total amount that Peter and Blair must save if they wish tocompletely fund their income? shortfall, assuming a 2 percentinflation rate and a return of 11 percent.

Answer & Explanation Solved by verified expert

4.3 Ratings (909 Votes)

This is a question of Present value of annuity and future value of annuity Inflatin adjusted rate of return1rate of ret1inflation1 1111021 0882353 or 882353 They need additional income of See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Peter and Blair recently reviewed their future retirement incomeand expense projections. They hope to retire in 25 years andanticipate they will need funding for an additional 13 years. Theydetermined that they would have a retirement income of ?$45 comma000 in? today's dollars, but they would actually need ?$64 comma417 in retirement income to meet all of their objectives. Calculatethe total amount that Peter and Blair must save if they wish tocompletely fund their income? shortfall, assuming a 2 percentinflation rate and a return of 11 percent.