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In: Finance

You believe you will spend $48,000 a year for 12 years once you retire in 24...

You believe you will spend $48,000 a year for 12 years once you retire in 24 years. If the interest rate is 5% per year, how much must you save each year until retirement to meet your retirement goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

  

   Annual savings $   

Solutions

Expert Solution

Calculate the present value of spending as follows:

Present value of retirement benefits is $425,436.085.

-----------------------------------------------------

Calculate the annual savings as follows:

Annual savings is $9,559.93.

jeff jeffy answered 11 months ago
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