Question
1. You plan to retire in exactly 20 years from today. Your goal is to create a fund that will allow you to receive $20,000
1. You plan to retire in exactly 20 years from today. Your goal is to create a fund that will allow you to receive $20,000 at the end of each year for the 30 years between retirement and death (a psychic told you that you would die exactly 30 years after you retire). You know that you will be able to earn 11 percent per year on your money in the retirement fund. How much will you need to save today as a single amount? *
2. Continue from the previous question, Assuming the same interest rate, instead of a single amount savings, if you want to make 20 beginning-of-year deposits for your retirement fund, how large do your annual deposits have to be? *
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