According to the future value calculation: An individual and his wife wants to retire at 62 on his birthday. Greg just celebrated his 40th birthday. He has accumulated $76,000.00 in his 401 (k) and his wife has accumulated $95,000.00 in her business. If the normal return to investors is 7.25%, how much money will they have on Greg's 60th birthday?

Total = $713,575.14

Explanation:

Giving the following information:

Greg just celebrated his 40th birthday. He has accumulated $76,000.00 in his 401 (k) and his wife has accumulated $95,000.00 in her business.

The normal return to investors is 7.25%

We will calculate the final value of George and his wife. We need to use the following formula on each capital.

FV = PV * (1+i) ^n

Georger FV = 76,000 * (1.0725^20) = $308,148.18

His wife FV = 95,000 * (1.0725^20) = $405,426.96

Total = $713,575.14