Multiple Choice
Your father, who is 60, plans to retire in 2 years, and he expects to live independently for 3 years.Suppose your father wants to have a real income of R40,000 in today's Rands in each year after he retires.His retirement income will start the day he retires, 2 years from today, and he will receive a total of 3 retirement payments.Inflation is expected to be constant at 5 percent.Your father has R100,000 in savings now, and he can earn 8 percent on savings now and in the future.How much must he save each year, starting today, to meet his retirement goals?
A) R1,863
B) R2,034
C) R2,716
D) R5,350
E) R6,102
Correct Answer:
Verified
Correct Answer:
Verified
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