Calculate annual investment to meet retirement target
Use worksheet 14.1 to help Andy and Rachel Cutler, who'd like to retire while the'ye still relatively young- in about 20 years both have promising careers, and both make good money. As a result they're willing to put aside whatever is neccessary to acheive a comfortable lifestyle in retirement. Their curent level fo household expenditures (excluding savings is around 76.000 a year and they expect to spend even more in retirement,they think they will need about 125% of the amount {Note 125% equals a multiplier fact of 1.25). Thet etimate that their social security benefits will amount to 24000 a year in todays dollars and thell recieive another 340000annually frome their company pension plans. they feel that future inflations will amount to about 3% a year and they think theyll be able to earnabout 6%on their investments before retirement and about 4% after ward see appendix A and appendix B
use worksheet 14.1 to find out how big andy and rachael investment nest egg will have to be. Round to the nearest dolar
How much theyll have to save annually to accumulate the needed amount within the next 20 years round awnser to the nearest dallar