How much must bob saveper year during the next 20 years

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Reference no: EM13281053

Bob does not want to gamble on Social Security taking care of him in his old age. He wants to begin to plan for retirement. He has enlisted the services of TSP Financial Planning to assist him in meeting his goals. Bob has determined that he would like to have a retirment annuity of $200,000 per year, with the first payment to be received 36 years from now at the end of his first year of retirement. He plans a long, enjoyable retirement of 25 years. He wishes to save $5,000 at the end of the next 15 years, and as unknown, equal end-of-period amount for the remaning 20 years before he begins his retirement. TSP Financial has advised Bob that he can safely assume that all savings will earn 12% per annum until he reitres. but only 8% thereafter. How much must Bob saveper year during the next 20 years preceding retirement? Show all work/calculations.

Reference no: EM13281053

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