You need in today dollars to reach your income goal

Assignment Help Financial Management

Reference no: EM132049310

You are 35 years old, and have not saved any money yet. You hope to retire at age 65, with a sustainable income of $150,000 per year of current buying power. You assume that inflation will be 3.1% and the fund you want to invest in will return 8.49% per year from now until your death.

a) What is your real rate of return? _____

b) How much money do you need in today's dollars to reach your income goal? $ _____

c) What is that amount in future actual dollars? $ _____

d) how much do you need to save each year to reach your savings goal? $ _____

Reference no: EM132049310

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