Question

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 $23,000 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 20 years at an estimated cost of $1,034,000. third, after he passes on at the end of the 20 years of withdrawals, he would like to leave an inheritance of $800,000 to his nephew frodo. he can afford to save $1,800 per month for the next 20 years. if he can earn a 10 percent ear before he retires and a 8 percent ear after he retires, how much will he have to save each month in years 21 through 30?

Answer 1