Question
Adams Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 12% basis that will enable him to
Adams Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 12% basis that will enable him to withdraw $16,420 per year on June 30, beginning in 2021 and continuing through 2024. To develop this fund, Adams intends to make equal contributions on June 30 of each of the years 20172020.
a.) How much must the balance of the fund equal on June 30, 2020, in order for Adams to satisfy his objective? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Balance of the fund equal on June 30, 2020 |
$49873
b.)What are each of Adamss contributions to the fund?
Adamss contributions to the fund |
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