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11 June, 19:02

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?

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  1. 11 June, 19:07
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    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
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