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How much will they need to have saved by the time

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Question - A couple will retire in 50 years; they plan to spend about $30000 a year in retirement, which should last about 25 years. They believe that they can earn 8% interest on retirement savings.

Required -

a. How much will they need to have saved by the time they retire?

b. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year.

c. The couple now realizes that they prefer to do their savings on a monthly basis. If they can earn 8% interest compounded monthly, calculate the monthly savings needed to save for their retirement ($2500 per month).

Reference no: EM132536563

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