Peter Is Currently 30 Years Old and He Plans to Retire

question 92

Essay

Peter is currently 30 years old and he plans to retire early,in 20 years' time.He would like to have an income of $50,000 per year during his retirement,which he anticipates will last for another 40 years.Assume that Peter receives the retirement income at the end of each of the 40 years.
Required:
Determine the amount of money Peter will need to have accumulated by the time he starts his retirement.Assume a discount rate of 9%.

---

Definitions:

Compliance

denotes the act of conforming to a request, rule, or specification. It is often driven by the desire to meet external expectations or obligations.

Recalcitrant Opponent

An individual or entity that is especially difficult to persuade, manage, or overcome, often resisting authority or control.

Adherence

Adherence means staying attached or committed to a cause, idea, or policy.

Integrative Arrangement

A negotiation outcome that involves constructive, cooperative solutions that benefit all parties, often through creative problem-solving and addressing underlying needs.