Explain how much will he have to save each month in years

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Reference no: EM13131646

Mr. Dreamer 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 $12,000 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 Colorado in 12 years at an estimated cost of $250,000. Third, after he passes on at the end of the 15 years of withdrawals, he would like to leave an inheritance of $400,000 to his two grandchildren. He can afford to save $1,750 per month for the next 12 years. If he can earn an 9.0% EAR before he retires and a 8.0% EAR after he retires,

How much will he have to save each month in years 13 through 30?

Reference no: EM13131646

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