Posted by **Steven** on Sunday, August 5, 2012 at 5:54pm.

3. (TCO A) The following questions are worth 5 points each. Please show all work.

a. Inflation is expected to average five percent for the long term and Mr. Smith earned $74,000 this year, how much must he earn in 20 years just to keep up with inflation and maintain the balance between his income and his increasing expenditures?

74000*2.653=196,322

b. Jamie wants to have $2,000,000 for her retirement in 35 years. How much should she save annually if she thinks she can earn eight percent on her investments?

2000000*.094=

c. The Flemings will need $160,000 annually for 30 years during retirement. How much will they need at retirement if they can earn a four percent rate of return?

d. The Hamptons want to have $2,500,000 for their retirement in 30 years. How much should they save annually if they think they can earn seven percent on their investments?

## Answer This Question

## Related Questions

- algebra - On a trivia game show, a contestent will answer 21 questions. A ...
- Finance - (Inflation) A projectâ€™s initial investment is $40,000, and it has a ...
- math - Assume that the average annual salary for a worker in the United States ...
- Finance - . (TCO 3) Mark deposited $1,000 today, in an account that pays eight ...
- Finance - A Treasury note with a maturity of four years carries a nominal rate ...
- finance - 12. A Treasury note with a maturity of four years carries a nominal ...
- finance - 12. A Treasury note with a maturity of four years carries a nominal ...
- Economics - One year ago, you bought a bond for $10,000.00. You received ...
- Finance - One year ago, you bought a bond for $10,000. You received interest of...
- Economics - One year ago, you bought a bond for $10,000. You received interest ...

More Related Questions