Question
A) How much must you deposit today to be able to make 12 annual payments of $100,000 each if the first payment is in 10
A) How much must you deposit today to be able to make 12 annual payments of $100,000 each if the first payment is in 10 years and you can earn 5% interest?
B) You want to retire in 35 years and withdraw $500,000 per year for 30 years after retiring. You plan to save $550 per month until retirement. If you expect to earn 5% interest during retirement, what annual rate must you earn until you retire?
I'm sloving on a calculator (ti 84) so in the exsplanation if you could tell me what in thw question is PV,FV, PMT, N, and I that would be very helpdul.
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