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11 Amy plans to work for 25 years and retire. Retirement will likely be for 50 years. Amy would like to have $150,000 per year
11 Amy plans to work for 25 years and retire. Retirement will likely be for 50 years. Amy would like to have $150,000 per year during retirement. For purposes of planning, Amy believes that an appropriate discount rate is 5%. What should Amy deposit at the end of each year of work to produce the $150,000 at the end of each year of retirement. 5% Future value of ordinary annuity Present value of ordinary annulty 25 years 50 years 47.72710 209.34800 14.093994 18.25593 a. $392,150 b. $115,778 C. $71,651 d. $57,375 O a Ob Od
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