Calculate the total wealth of client upon retirement

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Assume a client of yours is now (t=0) forty-five and plans to retire 10 years (t=10) from now at age fifty-five. He plans to save $10,000 a year for the next three years (t=1,2 and 3) and $18,000 a year for the following seven years (t=4,5...10). Moreover, your client owns a piece of land currently valued at $150,000, which is expected to appreciate in value 10% per year.

REQUIRED:

a) Disregarding taxes and assuming savings will appreciate at 12% compounded annually, calculate the total wealth of your client upon retirement (from savings and real estate)

Reference no: EM132660742

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