Anticipating his retirement plan

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Reference no: EM131060426

Edward intends to retire in 20 years. Upon retirement, he will require a yearly cash flow of $70,000 for 25 years to support his lifestyle (yearly cash flows assumed to occur at the end of each year). Anticipating his retirement plan, he started investing $6,000 per year five years ago and will continue to do so for 20 more years. How much more will Edward have to invest each year for the next 20 years to have the necessary funds for his retirement? Use a 10% per year discount rate throughout this problem (for discounting or compounding).

Reference no: EM131060426

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