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Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 408 Weeks Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
You have just had your thirtieth birthday. You have two children. One will go to college 8 years from now and require four beginning-of-year payments for college expenses of $12,000, $13,000, $14,000, and $15,000. The second child will go to college 14 years from now and require four beginning-of-year payments of $16,000, $17,000, $18,000, and $19,000. In addition, you plan to retire in 25 years. You want to be able to withdraw $60,000 per year (at the end of each year) from an account throughout your retirement. You expect to live 25 years beyond retirement. The first withdrawal will occur on your fifty-sixth birthday. What equal, annual, end-of-year amount must you save for each of the next 25 years to meet these goals, if all savings earn a 13 percent annual rate of return?
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