Bilbo Baggins wants to save money to meet his retirement objectives. He would like to be...

Bilbo Baggins wants to save money to meet his retirement objectives. He would like to be able to retire 30 years from now with a retirement income of $13,174 per month for 20 years, with the first payment received 30 years and 1 month from now. After he passes on at the end of the 20 years of withdrawals, he would like to leave an inheritance of $751,229 to his nephew Frodo. Before his retirement, he plans to deposit $2,000 per month in Account #1, which will earn 3.6%, and $x per month in Account #2, which will earn 5.4%. The post-retirement return is equal to 7.2%. How much will Bilbo have to save in Account #2 every month (i.e., $x) in order to achieve his retirement objectives?

Solutions

Expert Solution

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Bilbo Baggins wants to save money to meet three objectives. First, he would like to be...

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 $28,000 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 $1,149,000. Third, after he passes on at the end of the 20 years of withdrawals, he would...

Bilbo Baggins wants to save money to meet three objectives. First, he would like to be...

Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with a retirement income of $28,500 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 10 years at an estimated cost of $365,000. Third, after he passes on at the end of the 20 years of withdrawals, he...

Bilbo Baggins wants to save money to meet three objectives. First, he would like to be...

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 $31,000 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 10 years at an estimated cost of $390,000. Third, after he passes on at the end of the 20 years of withdrawals, he would...

Bilbo Baggins wants to save money to meet three objectives. First, he would like to be...

Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with a retirement income of $33,000 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 10 years at an estimated cost of $410,000. Third, after he passes on at the end of the 20 years of withdrawals, he...

Bilbo Baggins wants to save money to meet three objectives. First, he would like to be...

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 $22,000 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 $1,423,000. Third, after he passes on at the end of the 20 years of withdrawals, he would...

Bilbo Baggins wants to save money to meet three objectives. First, he would like to be...

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 $29,000 per month for 15 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 15 years at an estimated cost of $603,000. Third, after he passes on at the end of the 15 years of withdrawals, he would...

Bilbo Baggins wants to save money to meet three objectives. First, he would like to be...

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 $26,000 per month for 30 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 $977,000. Third, after he passes on at the end of the 30 years of withdrawals, he would...

bilbo baggins wants to save money to meet three objectives. first, he would like to be...

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...

Bilbo Baggins wants to save money to meet three objectives. First, he would like to be...

‎‏Bilbo Baggins wants to save money to meet three objectives . First , he would like...

‎‏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 $ 26,000 per month for 30 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 $ 256,000 . Third , after he passes on at the...

Subjects