Lastly, when Earl comes to the end of his life, he does not want to place any burden on his family, so he decides to set up one more account that will pay for his funeral expenses. He hopes to live a long and active life, so the first thing he needs to figure out is how much money he will need to set back. If a basic funeral cost $7500 today and the inflation rate averages 1.75% per annum, how much will a basic funeral cost 60 years from today?
How much will Earl need to deposit semi-annually in an account paying 4.5% annual interest, to be able to pay for a funeral in 60 years?