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Posted on Jul 06, 2024

An employee's compensation includes an annuity that pays $50,000 at retirement, with each subsequent annual payment growing by 6% for a total of 5 payments

An employee's compensation includes an annuity that pays $50,000 at retirement, with each subsequent annual payment growing by 6% for a total of 5 payments overall. The firms policy is to pre-fund such annuities before retirement. At an interest rate of 7%, how much would the firm need to invest 4 years before retirement?

Please round your answer to the nearest hundredth.

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